Facebook Acquisition Instagram Worth $ 1 Billion Dollars
Facebook announced on Monday (9/4) they have reached an agreement to acquire Instagram photo-sharing applications with a range of values around 1 billion dollars. Acquisition transactions in the form of a combination of cash and stock.
CEO and founder of Facebook, Mark Zuckerberg made the announcement posted on his Facebook. “I am very eager to preach the good news that we have acquired Instagram and soon, a very talented team who were there will join Facebook,” Zuckerberg wrote.
Nevertheless, Zuckerberg promised not to make drastic changes that occur in applications that are installed on the device’s mobile phone. “We will still keep the features it has compared to directly integrate it into Facebook,” he said.
According to him, users can still share their photos with other social networking sites, not just on Facebook. “That’s why we are committed to developing Instagram independently. Millions of people around the world love this application. Our goal is to help keep this application spread to many people anymore,” he explained.
This move, says Zuckerberg, is the largest transaction processing due to all this they never bought the team for Instagram. “This is a significant milestone for Facebook because for the first time to buy a product and company ‘with a large transaction processing,” he said.
Facebook, of late, made many changes to the photo sharing experience with other users. By purchasing Instagram then Facebook prepares to begin a new phase that is also exciting for the fans Instagram and Facebook itself.
With just nine employees, Instagram which has headquarters in San Francisco recorded 27 million registered users on Apple IOS devices only. Last week, Instagram launches Android version and recorded more than 1 million users within 24 hours.
Instagram itself is currently planning a strategy to expand its services into the social networking feature complete, as the increased popularity in recent months. When a social network is intact, Instagram likely to like Facebook, Twitter or the Path based on photos.
“Instagram is something of significant value. Not just for Facebook, but also for Twitter who also targeted her,” said the founder of Internet Social Fund Lou Kerner.
“I’m sure Google is also interested. Acquisition such as this could mean a strategy to attack and survive. This will be an asset that can increase value to anyone who wants to compete against Facebook,” he added.
Proclaimed by Reuters on Tuesday (4/10/2012), the plan later in time, Facebook will establish features in Instagram.
“It is important to point up because it is the first time we acquired the product and the company that has many users,” Facebook CEO Mark Zuckerberg wrote in a blog post.
The deal is expected to be closing this quarter. According to sources from within Instagram, Instagram CEO Kevin Systrom transaction was announced to employees at 09.00 am local time on a meeting last Monday.
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