10 Reasons Why Facebook Bought Instagram

In the event the Social Network 2 is created, I hope the screenwriter will not pass up the prospect to own Mark Zuckerberg make clear to Sean Parker that “a billion dollars is not cool. Spending a billion dollars is.”

Mark Zuckerberg posted the following letter to his Timeline about the purchase:
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.
Facebook’s announcement Monday that it's obtaining Instagram, a valuable mobile app for sharing retro-ized photographs has everybody inquiring, ‘Why would Facebook spend $1 billion for an organization without profits?”

1. Because it could. It is reasonably unusual for a corporation to drop a great billion heading into its IPO, but Fb currently features a ton of cash readily available (just below $4 billion according to its S-1 filing) thanks to personal share income to Goldman Sachs, says University of Notre Dame biz prof Tim Loughran. “Facebook, with massive income on hand, is already performing similar to a big, publicly-traded tech firm,” states Loughran. “Facebook didn’t need to have to go community very first to find the funds to make the main acquisition.”

2. Simply because it did not desire a competitor to snap it up 1st. “It appears that Facebook genuinely desired to buy Instagram ahead of one more bidder (probably Google) created the offer,” states Loughran.

3. Simply because Facebook’s cellular application sucks. Instagram’s does not. “Will this deal seem inexpensive in two a long time?” asks Victoria Barrett. “Probably, if Facebook works in your cellphone.”

4. Since Facebook is using a midlife disaster, along with the acquisition in the beloved, hip photo-sharing app is its equal of buying a sportscar. The universal consensus is always that Facebook isn’t great anymore. It’s received wrinkles, or a minimum of many more end users with wrinkles. By purchasing Instagram, Facebook purchased by itself 30 million hipsters, and all of their fantastic hipster amazing.

5. Due to the fact a lot of people are on Facebook to look at other people’s photographs, and Fb would like to keep it this way. Now you’ll be able to add all kinds of cool filters in your Fb pictures, a feature that attracted above 30 million men and women to Instagram. “Providing the very best picture sharing encounter is one explanation why numerous individuals adore Facebook and we realized it could be value bringing these two companies together,” said CEO Mark Zuckerberg. Om Malik at GigaOm translated that as: “Facebook was terrified s**less and understood that for initial time in its life it arguably had a competitor that can not only take in its lunch, but additionally ruin its potential prospects.”

6. A lot more knowledge. Which translates into far better cellular advertisements. Techie Robert Scoble argues that Instagram includes a greater notion of what its users are carrying out and whatever they like undertaking. “If you are a skiier, you are taking photos of snow and skiing. In case you are a foodie you take images of foods at high-end dining establishments. Should you be into quilting, a great deal of your images will likely be of that,” writes Scoble at Quora. “Facebook’s databases require this information to enhance the media it is going to deliver for you. This knowledge is Well worth S***LOADS! Imagine you are a ski resort and wish to reach skiiers, Instagram will provide them with a whole new approach to try this, all while being far much more targeted than Facebook normally may be.”

7. Due to the fact it wanted to buy soul. Facebook is becoming a massive, money-making behemoth, that makes it quite attractive to traders but causes it to be slightly tougher to get Mark Zuckerberg severely when he waxes poetic regarding the Hacker Way. The consumers of Instagram are still enamored in their minor application, much to ensure they come to feel outraged about it promoting out. “Facebook bought the issue that's hardest to fake. It purchased sincerity,” says Paul Ford at NYMag.

8. Simply because it is more affordable than inventing a time machine. “Before Instagram, if I wanted my images to look like they were taken inside the ‘60s, I’d need to invent a time machine and journey again 50 years,” mentioned certainly one of the Day-to-day Show’s “youth” correspondents.

9. Mainly because it wanted an upscale model of Facebook to help keep the digital upper class satisfied. Just as Williams Sonoma designed West Elm for all those who turned up their noses at Pottery Barn, Facebook requirements a spot in which its customers can dangle out the place they won’t run in the “technological laggards.” “Facebook is not the preferred spot or permanent mailing address of the digital higher course,” writes Carles at Grantland. “While Fb turned 1 on the most useful sites on the web by making it possible for mass-market audiences to engage in ‘life’ as we now understand it, it's nonetheless under the threat of getting to be an impersonal experience with no consistent innovation that is certainly geared toward making users truly feel like they're building anything meaningful as they add their ‘lives’ to the social network. Being on Fb just doesn’t make you really feel like a VIP.”

But getting on Instagram does, partially as it has been the unique provenance of iphone consumers for therefore extended. When it last but not least released a version for that Droid, I snapped it up immediately.

10. Simply because it’s terrified. “Young very hot technologies firms are nothing at all otherwise aware about their mortality,” write Nick Bilton and Somini Snegupta in the Ny Instances. “Because a lot of began out by wounding an older tech giant, they know they are able to be killed, or at the least severely injured, by that which lurks within the rented office room of Silicon Valley - an excellent hotter, young engineering business.”

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