Monday, April 09, 2012

Facebook snaps up Instagram for $1B; app will still support other social networks

The hits just keep on rolling for Instagram. Not only did the company release an Android version of the app less than a week ago to wide fanfare, now, the company has hit the jackpot: they've been acquired by Facebook.

Facebook announced the acquisition via a post by CEO Mark Zuckerberg. The deal is worth $1 billion (with a B) in cash and stock to Instagram.

Facebook hasn't exactly been overperforming in terms of mobile support. Remember how long it took them to support the iPad with a native app? Meanwhile, Instagram's iOS version was named the top iPhone app in 2011, by Apple. It's said to have 30 million iOS users and reached over a million downloads in its first 12 hours on Android.

If you're concerned that with Facebook's acquisition, the ability to share to other social networks will be going away, the answer is no. Instagram confirmed that in its own blog post.

Ironically, just prior to the announcement of the acquisition, Instagram closed a $50 million Series B round of funding from Sequoia Capital, Thrive Capital, Greylock and Benchmark at a $500 million valuation. As the company is currently a $1 billion company, those investors have already doubled their money in just a few days (the funds were wired to Instagram last Thursday).

It will be interesting to see if there is any fallout from the acquisition.  There shouldn't be, based on the assurances given by the companies.

Still, there was a lot of flak from iOS users after the Android version was released, with many Tweeting and otherwise posting comments such as "Ewww," basically saying that Android users will pollute the Instagram ecosystem.

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