Is Instagram worth $1 Billion worth? Facebook thought it is hence acquires it. Today Facebook co-founder Mark Zuckerberg announced Facebook is acquiring free photo sharing app for approximately $1 Billion in cash and stock. The deal is expected to be closed before the end of this quarter.
All Instagram employees would work under Facebook but Facebook decided to keep Instagram a seperate app as it is currently. Mark also accoknowledges that, they would also keep features like post photos to other social networks and ability to not share your photos on Facebook. This is a welcome idea from Facebook and this will help Instagram to continue its growth.
Instagram a 13 employee company founded in 2010 by Kevin Systrom and Mike Krieger which raised $50 million funding from venture capitalists. This recent fund raising valued company at $500 million.
Instagram app launched Apple App store app in October 2010 and in just around 2 months by December 2010 it had one million registered users. By April 2012 over 30 million users registered in Instagram as per companies recent announcement.
In April 2012 Instagram launched Android app which is first other than iPhone app. Instagram Android app downloded one million times in just 12 hours after the launch.
What do you think about this acquisition? Is it good for Instagram or Facebook eventually kills Instagram? Let us know your opinion in the comments below.