Facebook buys Instagram for $1 billion
Zuckerberg vows to keep Instagram independent for its millions of users
Computerworld - Facebook is buying Instagram, maker of a popular mobile photo-sharing app, for $1 billion in cash and stock.
"For years, we've focused on building the best experience for sharing photos with your friends and family," wrote Zuckerberg. "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.
"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."
Zuckerberg also made it clear that he wants Instagram to remain independent, noting that Instagram users will be able to continue posting their photos to other social networks, such as Twitter, and won't have to share their photos on Facebook.
Buying Instagram is a smart move for Facebook, said Dan Olds, an analyst at Gabriel Consulting Group.
"Instagram can potentially help Facebook in several ways," he noted. "First, there are something like 10 million Instagram users out there -- the vast majority of whom are using it to post to Facebook. Owning Instagram will allow Facebook to more tightly integrate [Instagram's] capabilities and functions into the fabric of Facebook."
Tighter integration will give Facebook more information about what people are doing with Instagram -- and Facebook will then have an opportunity to analyze and monetize that data, Olds said.
"It could also give Facebook a building block they can use to put together their own Pinterest-type app, which is sort of a natural for Facebook, I think," he said.
Patrick Moorhead, an analyst at Moor Insights & Strategy, said Facebook will need to expand on what Instagram can do.
"This is a smart move for them as long as they integrate as a distinct brand and continue innovating," said Moorhead. "Otherwise, it will become a lifeless Flikr repeat."
Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, or subscribe to Sharon's RSS feed . Her email address is firstname.lastname@example.org.
- What to expect in Facebook's earnings call today
- Could you quit Facebook for 99 days?
- Facebook is a school yard bully that's going down
- EPIC says Facebook 'messed with people's minds,' seeks FTC sanctions
- 7 things you need to know about Facebook's mood experiment
- Facebook emotional manipulation test turns users into 'lab rats'
- Facebook tries to stop Snapchat drain with Slingshot
- TMI! Facebook moves to stop over-sharing
- Inside Facebook's brilliant plan to hog your data
- Facebook shows mobile app developers the money with new ad network
Read more about Web Apps in Computerworld's Web Apps Topic Center.
- How Network Connections Drive Web Application Performance Users around the globe, on all sorts of devices, expect Web applications to function as seamlessly as desktop applications. This paper discusses the...
- 5 Things You Didn't Know About Cloud Backup IT departments are embracing cloud backup, but there's a lot you need to know before choosing a service provider. Learn all the critical...
- What is this "File Sync" Thing and Why Should I Care About It? All of a sudden, getting a file from your work laptop to your iPad became as simple as clicking "Save." So it's no...
- The Truth About Cloud Security "Security" is the number one issue holding business leaders back from the cloud. But does the reality match the perception?
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All Web Apps White Papers | Webcasts