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Facebook buys photo sharing service Instagram for $1bn

By dpreview staff on Apr 9, 2012 at 17:51 GMT

Just as Instagram looked to expand its ambitions as a mobile photo sharing network, it has been bought by Facebook for $1bn. Facebook CEO Mark Zuckerberg says his company 'need[s] to be mindful about keeping and building on Instagram's strengths and features, rather than just trying to integrate everything into Facebook.' He stresses the importance of growing the service independently of Facebook and voices support for Instagram's recent expansion to easily share images from other Apps, such as Hipstamatic and Camera Awesome.

CNN's Money site provides the interesting reminder that the sale price is nearly 30 times the amount Yahoo paid for Flickr, back in 2004.


Facebook Press Release:

MENLO PARK, CALIF.—April 9, 2012—Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.

The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later this quarter.

Mark Zuckerberg, founder and CEO of Facebook, posted about the transaction on his Timeline:

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.

We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram's strengths and features rather than just trying to integrate everything into Facebook.

That's why we're committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.

We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.

These and many other features are important parts of the Instagram experience and we understand that. We will try to learn from Instagram's experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook's strong engineering team and infrastructure.

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.

Comments

Total comments: 144
12
D1N0
By D1N0 (Apr 9, 2012)

so I will be able to instagrate pictures not made with my crappy phonecam? That would be nice.

0 upvotes
ballepalle
By ballepalle (Apr 9, 2012)

try befunky.com..really nice actually

0 upvotes
HaroldC3
By HaroldC3 (Apr 9, 2012)

Good for Instagram. I wish I would have developed an app and sold it for 1bn.

Comment edited 11 seconds after posting
0 upvotes
tkbslc
By tkbslc (Apr 9, 2012)

So they are going through all the trouble of an IPO to raise 5 Billion and they blow 1 billion on Instagram already?

Does Instagram even have a revenue stream?

1 upvote
Steven Blackwood
By Steven Blackwood (Apr 9, 2012)

Good question. How is this going to make money for FB?

2 upvotes
ezradja
By ezradja (Apr 9, 2012)

BOOM! Now what would you say iSheep fanboys?!?!?

0 upvotes
Just a Photographer
By Just a Photographer (Apr 9, 2012)

Instagram is available for Android too...
Who's the sheep?

But I know who the wolf is....

Comment edited 36 seconds after posting
1 upvote
daniel fritzen
By daniel fritzen (Apr 10, 2012)

And the snobby instagram users from Apple phone hate android phone users, http://www.cnn.com/2012/04/05/tech/mobile/android-iphone-instagram/index.html?iref=allsearch

0 upvotes
photosen
By photosen (Apr 9, 2012)

Uninstalling... Done.

3 upvotes
mpgxsvcd
By mpgxsvcd (Apr 9, 2012)

The question is "Did you delete your facebook account as well"? As much as people complain. Facebook is still the place where most of the people you want to share photographs with are at.

1 upvote
ezradja
By ezradja (Apr 9, 2012)

fake hipster detected.

3 upvotes
photosen
By photosen (Apr 9, 2012)

I had deleted my FB account long ago... And hipsters would be those using instagram!

0 upvotes
tkbslc
By tkbslc (Apr 9, 2012)

Hipsters don't use digital cameras, silly.

2 upvotes
marcofoto
By marcofoto (Apr 9, 2012)

noooo

0 upvotes
Max Privette
By Max Privette (Apr 9, 2012)

Wow !!!

1 upvote
Total comments: 144
12