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Facebook to Acquire Instagram for 1 Billion....

Discussion in 'Off Topic' started by Bob, Apr 9, 2012.

  1. Bob

    Bob Well-Known Member

    Facebook has just announced that it will acquire Instagram, the popular mobile photo-sharing service, for $1 billion in cash and shares.

    The social networking giant posted on the acquisition, its biggest yet, on its site, as well as on CEO and co-founder Mark Zuckerberg’s Timeline on Facebook.

    Photos are critically important for Facebook, which has been slow to innovate in the fast-growing mobile arena in the important consumer space. By contrast, Instagram has taken the arena by storm, with its delightful and elegant app and the motto, “Fast beautiful photo sharing.”

    Consumers have responded (including me — it is the only non-communications app I use many times a day). The San Francisco-based company — with only 13 employees — had 30 million Apple iPhone users before it came to Google’s Android last week, where it got more than a million new users in just 12 hours.

    Still, despite all the usage, Instagram had not articulated a plan for, you know, making money. Now, that will presumably be Facebook’s problem to solve.

    The Facebook acquisition has been kept very quiet, with its CEO Kevin Systrom working on it in conjunction with new fundraising efforts that would have valued the company at $500 million. Liz Gannes reported on this effort last week, which was poised to close, in fact, before the Facebook deal was struck over the weekend.

    Until now, Instagram has received Series A funding of $7 million led by Benchmark Capital just over a year ago, when it only had 1.75 million registered users.

    Seed investors include Andreessen Horowitz — which did not follow on later — and Baseline Ventures. Also in the Benchmark round: Twitter creator Jack Dorsey, former Facebooker Adam D’Angelo and Chris Sacca.

    In a blog post titled “Instagram + Facebook,” Systrom promised no change, except for the $1 billion mountain of cash:

    “It’s important to be clear that Instagram is not going away. We’ll be working with Facebook to evolve Instagram and build the network … The Instagram app will still be the same one you know and love.”

    Zuckerberg also promised that Facebook would keep Instagram independent, and that such a large purchase would be rare for the company, which is set to go public soon.

    “This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users,” he wrote. “We don’t plan on doing many more of these, if any at all.”

    Here is the full press release from Facebook:

  2. Carlos

    Carlos Well-Known Member

    A very interesting acquisition. :)
  3. dieketzer

    dieketzer Well-Known Member

  4. Carlos

    Carlos Well-Known Member

    Why the sadness? This means Instagram can make better integration, better product, and Facebook can bring more market into Instagram.

    This is good news for all concerned, since Facebook/Mark Zuckerberg has already said that they have no plans to change anything yet. In fact, they're giving their users the choice to detach their facebook info from the app.
  5. SilverCircle

    SilverCircle Well-Known Member

    He also said, Facebook does care about our privacy, you get the idea (hopefully).
  6. dieketzer

    dieketzer Well-Known Member

    thats the same kind of line i was fed by iB a few years ago. look how that turned out.
    facebook will want some sort of return on their investment, whether that be ads, data, whatever. im not too happy about it.
  7. Carlos

    Carlos Well-Known Member

    I saw that, but this is a billion dollar investment. I don't think Mark is that stupid enough to alienate the instagram market.
  8. DRE

    DRE Well-Known Member

    As I've learned today 'better integration' means that now Instagram will install Facebook on your app for you. I tried connecting a different Facebook account but it wouldn't let me, so I had to not only remove the app from my Facebook account, I also had to uninstall the Facebook application instagram installed that runs in the background just to connect a different Facebook account to my Instagram.
  9. Anthony Parsons

    Anthony Parsons Well-Known Member

    They paid way more than it's worth... IMHO!
  10. Digital Doctor

    Digital Doctor Well-Known Member

    Picture sharing is an integral part of Instagram and Facebook.
    I think Facebook saw Instagram as a potential future competitor.
    I doubt it was worth 1 billion, mind you.
  11. Digital Doctor

    Digital Doctor Well-Known Member

  12. Brad L

    Brad L Well-Known Member

    I've never used instagram, but from what I hear it just applies various filters to an existing photo and adds a border. $1,000,000,000
  13. Digital Doctor

    Digital Doctor Well-Known Member

    Instagram: How many users does Instagram have?

    Oct 13 2010: 100,000 (via Kevin Systrom's top answer)
    Oct 20 2010: 200,000 (http://bits.blogs.nytimes.com/20...)
    Oct 28 2010: 300,000 (via Mike Krieger on net@night)
    Dec 21 2010: 1 million (http://bits.blogs.nytimes.com/20...)
    Feb 01 2011: 1.75 million (http://content.usatoday.com/comm...)
    Feb 15 2011: 2 million (http://techcrunch.com/2011/02/14...)
    May 03 2011: 3.6 million
    May 26 2011: 4.4 million
    Oct 31 2011: 12 million
    Dec 5 2011: 14 million
    Jan 24 2012: 15 million (http://thenextweb.com/apps/2011/...)
    Mar 11 2012: 27 million (http://www.cnn.com/2012/03/11/te...)
    May 1 2012: 50 million (http://www.zdnet.com/blog/facebo...)
    July 26 2012: 80 million (http://blog.instagram.com/post/2...)
    Sep 11 2012: 100 million (http://mashable.com/2012/09/11/i...)

    They got 1 billion because of their rapid growth.

    Instagram is great.
  14. Brad L

    Brad L Well-Known Member

    Those numbers are amazing. Maybe I should try it :barefoot:
  15. Forsaken

    Forsaken Well-Known Member

    Remember all the myspace profiles by teenage girls with antiqued photos, or with filters applied to them? That's Instagram.

    Also a wannabe photographer community it seems like.
  16. erich37

    erich37 Well-Known Member

    Instagram is now selling your photos ?

    Anthony Parsons and Adam Howard like this.
  17. Adam Howard

    Adam Howard Well-Known Member

    I'm not surprised about National Geographic's responce.

    The new terms "just about" (debatable) says all photos become the property of Instagram (Facebook) and may be re-used and distributed.

    Part of the new ad policy also suggest no photos with copywritten logos or watermarks (something National Geographic does). They basically don't want any "outside" advertizement (or anything preventing them from re-using and distributing the photos they now own).

    At least this is how I personally "understood" the policy change.
  18. SneakyDave

    SneakyDave Well-Known Member

    NatGeo does the same thing though with its contests...


    5. You retain all of your ownership rights in material you upload, comments you post, or other content you provide to the Site(“User Content”). By uploading User Content, however, you grant National Geographic (which includes its subsidiaries, affiliates, joint venturers, and licensees) the following rights: a royalty-free, worldwide, perpetual license to display, distribute, reproduce, and create derivatives of the User Content, in whole or in part, without further review or participation from you, in any medium now existing or subsequently developed, in editorial, commercial, promotional, and trade uses in connection with NG Products. National Geographic may license or sublicense, in whole or in part, to third parties rights in User Content as appropriate to distribute, market, or promote such NG Products. To enable National Geographic to use the User Content in NG Products, NG may request you to provide the User Content in other formats, and if technically possible, you agree to provide the User Content in such other formats so long as National Geographic pays you the reasonable costs of providing the User Content in such other formats. A NG Product is defined as "a product of National Geographic, a subsidiary, affiliate, joint venturer, or licensee of National Geographic, in any language, over which National Geographic has Editorial Control.” For the purposes of this Agreement, "Editorial Control" means the right to review, consult regarding, formulate standards for, or to exercise a veto over the appearance, text, use, or promotion of the NG Product. You also agree that National Geographic may make User Content available to users of the Site who may display and redistribute it in the same way that National Geographic makes all other Content available.
  19. D.O.A.

    D.O.A. Well-Known Member

    Hmm I guess blowing 1 bllion on a photo app and trying to look like a good investment means squeezing every cent out of suckers from now on.

    facebook exec; "yo zynga, buddy, pal... you make such cool games.... oh btw bro our processing rates have gone up to sell your digital sh*t. Your next bill will reflect this"
  20. dieketzer

    dieketzer Well-Known Member

    like i didnt see this one coming a mile away

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