Why Facebook bought Instagram a company that does not generate profits?
WHAT IS INSTRAGRAM?
It is a photo application created by Kevin Systrom and Mike Krieger, former employees of Google and Microsoft, respectively. Instagram provides visual effects-through-filters to images captured with the camera smartphones. The retouched photos can be shared instantly via social networks like Twitter and Facebook , as well as Flickr and blogging service Tumblr. It was initially designed for computers that run the IOS operating system (iPhone, iPad, iPod Touch), but two weeks ago opened the platform "Android"
ABOUT THE USE?
A report of "Los Angeles Times" reported that over half of web site visitors Instagram are under 35 years. Moreover, in the past month, most application users were aged between 18 and 34, while Facebook audiences of 25 to 34 and people over 55. "Instagram is not only a hit with teenagers. It has become a habit among them as they are prolific users of the service, ".
WHY THE ATTENTION OF FACEBOOK?
The application also regarded as the first mobile social network, came to the AppStore on October 6, 2010 and only two months after he got his first million registered users. Half a year later and had five million members. By July 2011, users had published 100 million photos on the mobile platform and in August that number reached 150 million. This impressive growth was what caught the interest of Facebook (it is said that Google and Twitter were also interested in buying it). Mark Zuckerberg Instagram bought when it was over 30 million users and only 13 employees hired.
Instagram USERS DO SUPPORT THE PURCHASE?
Crimson Hexagon , a company specializing in the study of content of social networks , said that only 12% of the 201,000 mentions of Twitter acquisition were positive immediately after the announcement. While 10% expressed their displeasure on Facebook and another 10% promised Instagram deleted. The objection to the purchase would be that users appreciate that there is much publicity in the application, unlike Facebook, and the fact that their personnel data is not sold to other companies.
THE REAL REASONS FOR THE ACQUISITION BY ANALYSTS
The interest does not lie in the Facebook application itself, but to get three very important things : a potential rival with a user base growing rapidly, a weapon against other threats even greater in the field of social networks and, most importantly, a better angle into the world of mobile platforms. The magazine "Fortune" said this week that the real reason is that Facebook feared the potential of Instagram. "Facebook decided to absorb the competitor before they grow too much," said one analyst.
WHO ARE THE BENEFICIARY WITH THE PURCHASE
The people directly involved with Instagram, ie the founder and CEO Kevin Systrom and co-founder Mike Krieger. Industry sources say technology Systrom owns 40% of the company, which means that the agreement with Facebook earned $ 400 million . Krieger, however, owns 10% and is now $ 100 million richer than earlier in the week. "All for less than two years of work," said rightly the BBC. Another 100 million will go to the other 11 staff members, some of whom joined Instagram few weeks ago (lucky).The rest is for investors.
REALLY WORTH A BILLION DOLLARS?
A few weeks ago, three venture capital firms invested $ 50 million in Instagram, valuing the company at $ 500 million. Facebook bought for U.S. $ 1,000 million and some believe that the amount was paid grossly excessive. Journalist Joe Bridewood CNN wrote that Instagram "can not assert" what they paid for it. "The service don't have a proven business model. Only one photo application well designed and fun photo sharing network among smartphone users, "he said. In their view, at a time when we speak of a "new bubble" that could explode soon, the valuation of Instagram shows that "things have gotten out of control."
PROMISES OF FACEBOOK
Facebook will maintain the service , at least for the moment as it is, with your name and all its functions (including sharing content on other social networks). Mark Zuckerberg said the first time they buy a company with many users and have no immediate plans to return to make a similar purchase.
WHAT IS INSTRAGRAM?
It is a photo application created by Kevin Systrom and Mike Krieger, former employees of Google and Microsoft, respectively. Instagram provides visual effects-through-filters to images captured with the camera smartphones. The retouched photos can be shared instantly via social networks like Twitter and Facebook , as well as Flickr and blogging service Tumblr. It was initially designed for computers that run the IOS operating system (iPhone, iPad, iPod Touch), but two weeks ago opened the platform "Android"
ABOUT THE USE?
A report of "Los Angeles Times" reported that over half of web site visitors Instagram are under 35 years. Moreover, in the past month, most application users were aged between 18 and 34, while Facebook audiences of 25 to 34 and people over 55. "Instagram is not only a hit with teenagers. It has become a habit among them as they are prolific users of the service, ".
WHY THE ATTENTION OF FACEBOOK?
The application also regarded as the first mobile social network, came to the AppStore on October 6, 2010 and only two months after he got his first million registered users. Half a year later and had five million members. By July 2011, users had published 100 million photos on the mobile platform and in August that number reached 150 million. This impressive growth was what caught the interest of Facebook (it is said that Google and Twitter were also interested in buying it). Mark Zuckerberg Instagram bought when it was over 30 million users and only 13 employees hired.
Instagram USERS DO SUPPORT THE PURCHASE?
Crimson Hexagon , a company specializing in the study of content of social networks , said that only 12% of the 201,000 mentions of Twitter acquisition were positive immediately after the announcement. While 10% expressed their displeasure on Facebook and another 10% promised Instagram deleted. The objection to the purchase would be that users appreciate that there is much publicity in the application, unlike Facebook, and the fact that their personnel data is not sold to other companies.
THE REAL REASONS FOR THE ACQUISITION BY ANALYSTS
The interest does not lie in the Facebook application itself, but to get three very important things : a potential rival with a user base growing rapidly, a weapon against other threats even greater in the field of social networks and, most importantly, a better angle into the world of mobile platforms. The magazine "Fortune" said this week that the real reason is that Facebook feared the potential of Instagram. "Facebook decided to absorb the competitor before they grow too much," said one analyst.
WHO ARE THE BENEFICIARY WITH THE PURCHASE
The people directly involved with Instagram, ie the founder and CEO Kevin Systrom and co-founder Mike Krieger. Industry sources say technology Systrom owns 40% of the company, which means that the agreement with Facebook earned $ 400 million . Krieger, however, owns 10% and is now $ 100 million richer than earlier in the week. "All for less than two years of work," said rightly the BBC. Another 100 million will go to the other 11 staff members, some of whom joined Instagram few weeks ago (lucky).The rest is for investors.
REALLY WORTH A BILLION DOLLARS?
A few weeks ago, three venture capital firms invested $ 50 million in Instagram, valuing the company at $ 500 million. Facebook bought for U.S. $ 1,000 million and some believe that the amount was paid grossly excessive. Journalist Joe Bridewood CNN wrote that Instagram "can not assert" what they paid for it. "The service don't have a proven business model. Only one photo application well designed and fun photo sharing network among smartphone users, "he said. In their view, at a time when we speak of a "new bubble" that could explode soon, the valuation of Instagram shows that "things have gotten out of control."
PROMISES OF FACEBOOK
Facebook will maintain the service , at least for the moment as it is, with your name and all its functions (including sharing content on other social networks). Mark Zuckerberg said the first time they buy a company with many users and have no immediate plans to return to make a similar purchase.
DATA AND CURIOSITIES
* A billion dollars is equivalent to 2,100 cars Rolls-Royce Phantom model.
* With this amount you can buy 200 million bed nets to combat malaria.
* You can also buy The New York Times (and would overrun U.S. $ 50 million).
* Microsoft paid about the same for 800 patents AOL.
* Instragm already have 35 million users, suggesting that Facebook valued home user of the platform at $ 28.
* Facebook expects to reach $ 100,000 million with its listing on the stock (May), ie you would have spent only 1% of the company to purchase the application.
* Celebrities such as celebrity chef Jamie Oliver, rapper Snoop Dogg and Justin Bieber are fans of the application. President Barack Obama also has Instagram account .
* Users have made more than 1,000 million photos on the platform.
