Shocking news – Facebook buys Instagram. Most users as well as investors are quite shocked by this acquisition. All the rumors are in fact the truth. After Instagram billion dollars acquisition from one of the most popular social network Facebook, Instagram closed the round of 50 million dollars from Sequoia, Greylock, Thrive Capital and Benchmark at around 500 million dollars valuation.
Most investors had no idea about Facebook acquisition. Just during one night they have doubles their money. It was quite wired to Instagram. It is interesting why Systrom decided to delete his share and accepted financing very close to the present acquisition. Christine Heron thinks that Instagram have used A-list of investments. So this A-list could drive to the valuation of the company.
The CEO of Instagram Kevin Systrom has written a post in his blog. He is going to keep on running Instagram company in independent manner. As for the CEO of Facebook Mark Zuckerberg, he and his team were focusing for a long time on building better experience and ways of sharing photos. Users love sharing them with family, friends and dear people. So after this acquisition Facebook and Instagram will be able to work more closely and offer their users better ways for sharing photos made with their phones. Such photos will help people to stay more connected to each other, to share the present moment with people who are far away and share similar interests.
Instagram and Facebook acquisition can be compared to Google’s acquisition of YouTube of 1.65 billion dollars. Such a comparison makes the sense of the buy for a user and integration point. There are rumors that Facebook is going to build app for photo sharing. But at the same time they are aware that this platform will revolve a lot of problems around sharing of photos through mobile phones.