Haworth College of Business News
Instagram hits the $1B jackpot!
All eyes are now on Facebook, as the company prepares for an initial public offering of stock. Facebook has just updated its filing information to the SEC and now claims 901 million users who are sharing 300 million photos each day. Over half of those users are on mobile phones. With those statistics in mind, the recent announcement of the acquisition of Silicon Valley startup Instagram for $1 billion is not surprising.
Instagram is basically a photo sharing application for smart phones. Instagram allows users to share photos “in an instant” on social media such as Facebook and Twitter and via email.
Facebook announced that Instagram will continue to operate independently, but with $1 billion to share among a handful of employees, only time will tell whether Instagram’s youthful leadership becomes integrated into Facebook or whether it follows other dot com billionaires into serial startup or philanthropy mode.
The acquisition also reveals the importance placed on mobile computing, the next paradigm shift for Internet commerce. Instagram’s acquisition by Facebook signals that mobile and social are linked for consumers, and marketers are taking note.