Creating quite a stir in the blog/digital news sphere this week is Facebook’s $1 billion acquisition of the much-loved and adored app, Instagram. There has been a mixture of positive and negative reactions with x amount of people culling their Instagram account as they react to the news.
The two-year-old startup has reportedly received $0 in revenue and has no clear or established businesses model. So why did Facebook want to take over the app? For a few simple reasons. Firstly it is currently the worlds fasted growing social network with over 30 million active users and this is set to increase with a recent launch into the Android market (only yesterday, on its 6th day, 5 million downloads were achieved (Facebook now owns one of the most successful launched apps on Googles operating systems)). As a result Facebook is starving off its competition and gaining a strong, already evolved foothold in mobile engagement. Secondly Facebook will also be acquiring a very talented team of engineers that could only benefit the company.
It’s not the first time however that Instagrams Kevin Systrom had gained the curious eye of Mark Zuckerberg. Back in 2004 Systrom, a then college student had developed a different photo sharing device- Photobox. It was designed as a common platform for people to download large sets of photos, an alternate to sending large files via email. Systrom made the decision to complete his education, a decision he looks back on from time to time. Lucky for him it wasn’t the last time he was to come in contact with Zuckerberg and this meeting certainly foreshadowed what was to come down the track.
Head on over to Mashable where they have documented a thorough coverage of the acquisition including a guide on how to save your precious pictures if you’re deleting the app out of fear Facebook will bombard you with ads, a shout out to Facebook on how they can improve the app, and a personal plead to Facebook to not destroy the app.