The largest social network giant Facebook Acquires Instagram on monday for $1 billion in cash and stock. Instagram is a free photo sharing application over the social networking sites, which was started in the year of 2010 by Stanford graduates Kevin Systrom and Mike Krieger. It is a profitless and only two years old website, with only 13 employees who work on a single smartphone app. Although it is not a profitable site, it is very popular. It has some 30 million iPhone users all over the world.
Mr Zuckerberg, founder of Facebook wrote on his Facebook page yesterday as follows
“ I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.
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.“
He also Mentioned that
“ 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. We don’t plan on doing many more of these, if any at all. 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.
We’re looking forward to working with the Instagram team and to all of the great new experiences we’re going to be able to build together.“
Remember that Google also bought YouTube for $1.65 Billion in the year of 2006 from the YouTube founder Chad Hurley, Steve Chen, and Jawed Karim .