Posts Tagged ‘Instagram’

Facebook buys Instagram

Tuesday, May 1st, 2012

Mobile news presents… The giant social networking site finally closed the $1 billion deal with Instagram on April 9. It has shaken the technology world after it officially announcement.

Facebook confirmed that it will buy the 2-year old photo-sharing app Instagram for $1 billion. The company promised that Instagram will still allow users to share photos to other social networking site.

“For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests.” Mark Zuckerberg said, Facebook CEO.

Analysts said that Facebook does a great deal to purchasing the photo-sharing app Instagram. It is a good strategy in competing against its competitor. Michael Fauscette said that Facebook will definitely benefit from the app from sharing photos and editing on mobile as well as on desktops.

The purchasing of Instgram by Facebook is a good start up for the two young Stanford University graduates Mike Krieger and Kevin Systrom who founded Instagram. Krieger is a native Brazilian who have been struggling in setting his residency in US permanently.

Accoding to Zackerberg that Facebook was attracted to Instgram’s fast increase of Android users just a month after its release. In fact, there are over 7.3 million Instagram regular users already who have been sharing photos on Facebook.

“I think Facebook recognized that we don’t want a middleman doing a better job at what is our core competency,” Michael Pachter said, an equity analyst with Wedbush Securities.

Observers suggest that Facebook’s purpose in purchasing the app is to increase their revenue as marketing becomes increasing in mobile, social and visual.

“I think it’s a recognition that images are a hugely important new trend. It wasn’t that many years ago that taking pictures was something you did on vacation, or on your birthday. Today people take pictures every moment of their lives, and are sharing them with their friends.” Bob Lisbonne said, Mountain View-based Luminate CEO.

However, Zuckerberg said that Facebook will still allow them to post photos on other social networking site including their arch competitor Twitter. They will still have their independence, he added.