Facebook to Buy Instagram for $1 Billion [Updated]
Facebook has announced that it will purchase the popular photo manipulation and sharing app Instagram for $1 billion in cash and shares. The move comes as something of a surprise as Instagram only just announced its app would be available on the Android app store. Despite the purchase, both Facebook and Instagram insist that existing users of the app will have the same experience they’ve grown to love.
In independent, though closely worded, statements from both Facebook co-founder Mark Zuckerberg and Instagram CEO Kevin Systrom, the two have committed to keeping Instagram independent and active. In this blog post, Systrom wrote that the Instagram team will continue to develop the app, and will continue adding new features. Both Systrom and Zuckerberg promised that Instagram will continue to allow users to post to other social networks, and that Facebook posting via Instagram will remain optional. From Zuckerberg’s Facebook post:
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.
It’s clear that Zuckerberg knows a good thing when he sees one, and doesn’t want to drive away Instagram’s existing audience by dramatically changing their user experience.
For Instragram, it sounds like the practical upshot of this will be an enormous pile of cash and perhaps closer integration with Facebook. For Facebook, the relationship could bring about changes in how photos are handled on the social network. Again, from Zuckerberg’s Facebook posting:
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.
While photos have been a major part of the Facebook experience for a long time, the framework has remained relatively light on features. Perhaps this purchase will bring something similar to Instagram’s famed suite of filters to Facebook, or perhaps something more subtle.
Whatever the purchase means in the long term, it’s a major coup for Instagram. Consider: The cost-free and ad-free smartphone app just made a billion dollars overnight.
Full press release follows below:
MENLO PARK, CALIF.-April 9, 2012-Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.
The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later this quarter.
Mark Zuckerberg, founder and CEO of Facebook, posted about the transaction on his Timeline:
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.
(via Engadget, All Things D)
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