Friday 10 August 2012

Facebook pays $1 billion in cash for Instagram




  Facebook buy Instagram for $1 billion
(http://www.zealed.com.au)

Instagram is one of the social media programs most people would refer to it as "cool" . It as a photo-sharing site that uses a cellphone camera to take pics for either your Facebook or Twitter.
This program is popular in a way that Facebook together with Twitter and google were all interested in this program. It is said that Facebook payed $1 billion to Instagram's Chief Executive and co-founder (Mike Kreiger) to purchase this two-year-old -program on 9 April 2012.
Mark Zukerberg the founder of Facebook said that "Facebook was committed to building and growing instagram independently". He believes that this program will be of a good course for facebook, the reason for this is because most people uses Facebook to share photos. Thus instagram will be a much more interesting way of photo-sharing amongst people.
"Other sources suspects that Mark Zuckerberg has a fear of Facebook losing it's place, youngsters will get their social networking fix from other services". Kashmir Hill lists 8 Reasons Why Facebook Bought Instagram: (http://www.forbes.com)
  1. Because it could.
  2. Because it didn’t want a competitor to snap it up first.
  3. Because Facebook’s mobile app sucks. Instagram’s doesn’t.
  4. Because most people are on Facebook to look at other people’s photos, and Facebook wants to keep it that way.
  5. More data.
  6. Because it wanted to buy soul.
  7. Because it’s cheaper than inventing a time machine.
  8. Because it wanted to buy soul.

Instagrams foundersMike Krieger and Kevin Sytrom
(http://techcrunch.com/2012/04/09/facebook-to-acquire-instagram-for-1-billion/)
 "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. We’ll continue to add new features to the product and find new ways to create a better mobile photos experience". Mike Kreiger wrote on his blog post. This means Facebook was willing to pay such a huge amount of money for a program that is independently owned. A photo-sharing program that has been around for two years that will not belong to them. As we can see it might be possible that Facebook wanted to increase its followers, that people will be more interested on Facebook than ever before. 


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5 comments:

  1. Tumz14 August 2012 at 06:24

    Do you think that it is a good investment for Facebook?,since there are alot of softwares that are competent.

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    Replies
    1. Akhona14 August 2012 at 07:03

      I don't really think it is because other social networks such as twitter also let their followers upload picture using instagram. Another thing is that not all Facebook users are familiar and let alone like this instagram thing.

      Delete
  2. Sibusiso15 August 2012 at 02:27

    Thats a lot of cash hey, Facebook is forever changing its face do you think its worth it him to install Instgram?

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    Replies
    1. Akhona15 August 2012 at 04:06

      I don't think it is though we know that instagram is one of the most used photo-sharing sites. People still use it on other social networks such as twitter, so i think spending such a huge amount is was not that wise.

      Delete
  3. MphoMothiba15 August 2012 at 07:15

    @ Akhona, Well with twitter as the leading social media facebook needs to catch up with its target audiences.Instagram is definetly not going away.

    ReplyDelete

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