Facebook, which has around 850 million users, just purchased Instagram, which has 28 million users, for $1 billion, or $36 per user, nearly all of whom are already Facebook users.
Instagram is a photo sharing application for the IPhone. Instagram only recently created a version of their software for Android, probably because all of Instagram’s features are already built into Android.
So, in other words, what Instagram does is easily imitable and, for a lot less than $1,000,000,000, Facebook could have built their own, better Instagram for a lot less money and promoted it through Facebook.
Bad move, Zuckerberg.
Related articles
- Making sense of Facebook buying Instagram (theindustry.cc)
- 5 Ways Facebook Will Ruin Instagram (therussparrmorningshow.com)
- A Picture’s Worth A Billion Dollars (brandtstandard.com)
- Insta-growth: Instagram for Android hits 5M downloads in 6 days (venturebeat.com)
- Why Facebook’s $1B Instagram Buy Is Insane (internetevolution.com)
- Facebook Buys Instagram for 1 Billion! (binsidetv.net)