This week, it was announced that Facebook purchased the small, 2 year unprofitable startup company Instagram for ONE BILLION DOLLARS. Pretty good coin for a company with less than 20 employees and no clear way to generate revenues, right? But Facebook more than likely is not interested in how it will make money, rather, more interest perhaps lies in the cult like following Instagram has garnered in its short life. “Where Instagram did shine was in user adoption and engagement: the iPhone edition of the app has been downloaded and activated more than 30 million times since its October 2010 release. More than 1 million people downloaded the Android version of the app in the 12 hours following its launch last week.”
That is a lot of eyeballs and Facebook took notice. As a result, its co-founders will rake in $500 million, early investors $400 million and $100 mil to be split among its handful of employees who are now millionaires also.
The big question now seems to be, will people continue to use Instagram with Facebook as its new owner?
Have you used Instagram? What are your thoughts on the service and their technology? Do you find it easy to use? Would you recommend it to others?
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $1,600,000 in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a Free Online Marketing Consultation.
To read more of the article that inspired this blog, please visit: http://mashable.com/2012/04/09/instagram-ceo-400-million/