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Sunday, April 29, 2012

Facebook buys Instagram

Facebook buys Instagram

Facebook buys Instagra, 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."
Facebook CEO Mark Zuckerberg  announced that his company had paid big bucks  for the popular photo-sharing app.The deal, which works out at £631m, is expected to close later this quarter, the social-networking company said on Monday. In a statement, Facebook chief executive Mark Zuckerberg hinted that the acquisition will help shore up a relatively weak point in his company's product line.

"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," Zuckerberg said.

"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," he added. "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."

Instagram was only launched 18 months ago, and just one month ago it was valued at $500m. It has 13 employees, so Facebook's valuation works out at around $77m per employee. Facebook itself is getting ready to float onto the stock market, with a $5bn IPO expected to happen in MayWhile Facebook has long provided tools for mobile photo-sharing, its smartphone app does not offer much in the way of photo augmentation. Instagram was one of the first smartphone apps that made it easy to apply 'retro' filters to mobile photos, to make them appear more interesting.

The previously iPhone-only service released an Android version last week, scooping up a million downloads in the first day and a total of five million over six days. The iOS version had already amassed 30 million users.

While some analysts have suggested Facebook is aiming to scoop up these users through the purchase, they are mistaken, argues Gartner analyst Ray Valdes, who pointed out that many Instagram users will also have accounts on the social network. Instead, he believes the company is making the "eye-popping" purchase to keep Instagram out of the hands of a rival, he told ZDNet UK's sister site ZDNet Australia.

"Facebook is at the top of the heap of the social web," Valdes explained. "There are others that want to unseat them, but no one else has all the pieces. Instagram would have been a weapon in someone else's arsenal."
The now popular photo sharing site which started as an iPhone app was recently purchased by Facebook. Facebook CEO Mark Zuckerberg shared this Easter Monday via his Facebook profile page.

There were speculations before about a takeover but now it’s official. Facebook is paying the Instagram team a staggering one billion dollar for the app and its brand.

The free app was launched in October 2010 as a free app on the App Store. We’ve featured quite a number of Instagram-related products and services already because it has gone bigger. (I, for one, rarely open Facebook but instead use Instagram.) Earlier this month, an official Instagram Android app was released adding to the 27 million registered Instagram users.

Zuckerberg seems excited with his recent purchase. This is a first for the company to acquire another company. He made it clear that Instagram’s “talented team will be joining Facebook”. The CEO plans on building the photo sharing app brand’s features and strengths and not just integrate it to Facebook.

Here is Facebook CEO’s announcement:

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.
Last week, the popular photo share site Instagram announced a client for the Android platform. That is after the app had been available for one and half year to iPhone / iOS devices only. The new Android client was installed on one million handsets during the first day available to the platform. The current stats tell us that 30 million users has registered with the service and these have uploaded over 1 billion photos since 2010.

For those of you who has not tried the app, The Instagram app is a photo sharing tool. It's probably best described as Twitter for photos. One of its features is to apply some pre-set filters to the captured photos. Facebook values Instagram to be worth 1 billion USD. Instagram does not make any money and only 13 employees are working there. 1 billion dollar is around $77.000.000 per employee. Pardon us, but this reminds us about the dot-com era back in 2000. For comparison, Yahoo bought the Flickr photo site in 2005 for rumored $35 million.

Instagram is a community driven site. All content are provided by its users. Both the photos and the photo comments. When the service became available for the Android platform (Instagram is only viewable from a smartphone) its iPhone users became angry and they posted statements like this on twitter: Ew they game Instagram to android now?! #ruinedit and I don't want to see android phone in my instagram feed. I like it being an apple club. #teamiPhone.

The response from Instagram members today was mostly about Facebook buying their favourite site: If Facebook buys Twitter, then I quit all social networks. Sorry and Sad to see Facebook get their hands on my favourite app :-(

What Facebook bought today is not an app which enables users to distort their photos and upload these to a remote server. Facebook bought a community with 30 million users where all are interested in photography and sharing of photos.
It’s important to be clear that Instagram is not going away. We’l (sic) be working with Facebook to evolve Instagram and build the network. We’ll continue to add new features to the product and find new ways to create a better mobile photos experience.

Meanwhile, Zuckerberg – whose Facebook network boasts in excess of 800 million active users – was also clearly excited about Instagram. He issued a press release reflective of Systrom’s, and spoke briefly of the direction he plans to take Instagram.For those fearing Instagram disappearing in Facebook’s swirling vortex of disposable cash and endless apps, Zuckerberg also maintained that he and his team are dedicated to keeping Instagram independent. He knows how attached the tens of millions of users have become, and assures users it will not lose its identity:

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.

Of course, while the move will raise a few eyebrows, it shouldn’t come as too much of a surprise. Facebook has long since been the undisputed king of social image sharing, but Instagram has made incredible headway over the past year.Having built a 27 million-strong base on Apple’s iPhone, the Android version was finally released last week. It’s still early days for the Android iteration, but with a significantly larger consumer reach on the smartphone market than Apple, it’ll be a surefire hit.

Facebook has spent a mighty-might staggering $1 Billion to to acquire Instagram, and I’m quite certain that there will be speculation on that number at some point.

I would say this is a positive move, although I am, like many of you will be, a little skeptical of the large company swallowing up ‘the people’s app’. Let’s hope Facebook’s input doesn’t ruin it.

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Facebook buys Instagram Rating: 4.5 Diposkan Oleh: Tips SEO Youtube 2019

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