Y'all should know Instagram now? It's a photo-sharing site that Nigerian celebrities such as Naeto C use. Facebook bought the network for $1 billion in a combination of cash and stock. This gives Facebook access to the medium's 30 million active users; the largest audience of any start-up Facebook has purchased.
This is Facebook's biggest acquisition ever, in both price and reach. And it's for good reason; one of Facebook's abiding strenghts has been its capacity as the world's largest photo-sharing site. Instagram was competition for that. "We don't plan on doing many more of these, if any at all," Facebook CEO Mark Zuckerbag said in a blogpost. "But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together."
This is a surprising buy. Whilst Instagram is wildly popular and has a lot of buzz, it still doesn't boast of a workable business model that can generate profits. In contrast, Yahoo paid just $35 million seven years ago for Flickr, and that site is still perhaps the Internet's most popular photo network. There are just 13 working staff on ground.
I hope the deal works out!
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