Facebook Buys Instagram for $1 BillionWell, the time when Instagram was great might finally be at an end. The startup, which has a grand total of 6 employees, has been bought by social networking giant Facebook. Yep, this never ends well.
It’s good news for the investors in the company, however. The deal is going down for a cool $1 billion. That should make some people very rich.
While Instagram might seem like a small company, it has a big impact. Despite only having an iOS client until very recently, the company has 30 million regular users. With that many users, you can talk about it while discussing other, more well known social networking companies like Facebook, Twitter, Google and Tumblr. Not bad for such a small team.
With the company’s purchase by Facebook, however, we’re going to see a much, much larger user base. We’ll see tighter Facebook integration, more app development, and more features.
Unfortunately, Facebook also has an IPO coming up. That means that the company will soon have investors who are worried about things like a billion dollar acquisition. and you know what they are going to expect?
Instagram to make money.
Get ready for the premium filters, folks. Instagram will be ruined by profitability.
But for now, the app will benefit. And who knows? Facebook might fight back enough to keep the app from being ruined. Facebook as introed some pretty nifty new features recently that had less to do with making money than about making the social networking experience better. So maybe Zuckerberg will stick to his guns.
Hey, anything can happen.