FaceBooks’s CEO Mark Zuckerberg just announced that they (Facebook) just acquire InstaGram for $1 billion in cash and stock. Mark also explains that they’re keeping InstaGram independent and giving the same control to user before the deal was close. Which means InstaGram users are will still have the ability to share (or not to share) the photos that they took using InstaGram to whatever social media sites that they want.
The deal will surely give the InstaGram team the (Facebook) resources that a small startup can only dream of and with this announcement, it looks like Google would have to look somewhere else to find a good photo-sharing app that can directly compete with InstaGram, though I’m not sure if there’s currently one out there.
InstaGram will be a good addition to the ever growing Facebook family, since it’s one of the top photo sharing app, currently have more than 30 million users on both iOS and Android platform. If you can remember earlier this month, InstaGram announced the much awaited Android version of their app and reached more than 1 million downloads within the first 12 hours.
InstaGram currently has (only) 12 employees including the founders, so splitting that $1 billion between employees and investors won’t be a problem.
You can read Mark Zuckerberg’s announcement after the break.
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.
Update: Kevin; Instagram CEO just posted their own announcement.
Last modified: April 9, 2012