Photosharing app bought for $1 billion
Facebook has surprised the business world after buying Instagram for an impressive $1 billion. Instead of waiting for its first public offering that was due to take place next month, Facebook offered the huge sum to get their hands on the photosharing app.
Instagram was launched only 18 months ago and only has 13 employees, that’s a cool $77 million a head making it one of the most expensive business deals in history.
This is Facebook’s largest purchase to date, where previous acquisitions have been less than $100 million. The Instagram app is free and offers users the chance to apply 17 filters to their photos to give them a different effect before uploading them.
Popular with mobile users
The photosharing app has become very popular with mobile users and is Apple’s top selling app with more than 30 million users uploading five million images every day.
Facebook has always focused on building the best experience for sharing photos with family and friends. Facebook’s CEO Mark Zuckerberg announced he will be working closely with the Instagram team to also offer the best experiences for sharing photos based on interests.
A great week for Instagram
Instagram’s CEO Kevin Systrom has stated he is looking forward to working with the new parent company and using Facebook’s resources and talent.
In the space of a week, Instagram closed a $50 million financing round with several top investors that valued the app at $500 million. Then Facebook purchased the photosharing app resulting in the investment doubling in value.
I would have loved to be a fly on the wall when the Instagram employees found out the Facebook deal had gone through, the buzz in the office must have been amazing!