Facebook Acquires Instagram for $1B

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kicheko
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Re: Facebook photo sharing
kicheko   4/10/2012 6:41:16 PM
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Mitch, - I was watching some analysis of this take-over on CNN earlier today, and one of the analysts opined that indeed facebook may have needed a boost in the area photosharing. That it was a core business at facebook, just as we know, and the problem was that facebook wasn't doing so well in photo-sharing on mobile. An area that is definitely not one to be ignored when the whole world is moving to mobile internet.

It seems then that facebook really did see a genuine competitor in this area. They were smart enough to pick it up before it could become too costly to acquire. Before political interests, lawsuits, expensive goodwill etc.

Ryck
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Re: Best insight
Ryck   4/10/2012 3:19:20 PM
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Mitch, I agree.  It will be difficult for Facebook to leave Instagram alone, considering the $1 billion price tag.  Even the idea of running it independently seems a stretch.  Like others before, Facebook will find a way to have access to integration first or deeper than other social networks.

sohaibmasood
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Re: Facebook photo sharing
sohaibmasood   4/10/2012 1:25:56 PM
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Well personally I don't think Facebook is just about photosharing either. There is this social reader range through which you can read the leading newspapers and magazines of the world and share information with family, friends and colleagues. However, photos do bring life to Facebook, especially for the youth. It enhances the facebook experience. Afterall, a picture is better than a thousand words.

Mitch Wagner
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Facebook photo sharing
Mitch Wagner   4/10/2012 10:57:46 AM
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The GigaOm article Karl linked to is very interesting: Here is why Facebook bought Instagram. Om Malik says Facebook is all about photo-sharing, and Instagram was beating the pants off Facebook in the critical realm of mobile photosharing. 

Is that true? Is Facebook all about photo-sharing? I see a lot of photos in my News Feed, but I see a lot of other things too. Then again, I'm just one person. 

The acquisition also gives Facebook access to location information, because Instagram lets users geotag photos. 

Mitch Wagner
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Re: Best insight
Mitch Wagner   4/10/2012 10:28:51 AM
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@smkinoshita - Yeah, it's hard to imagine a big company buying a little one and then avoiding ruining the little one. Either Facebook will add features that users don't want, or they'll fail to update the service in some necessary fashion. 

smkinoshita
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Re: Best insight
smkinoshita   4/10/2012 10:21:49 AM
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$1 a picture?  That...

... actually that sounds oddly reasonable.

Personally, I think a quick lightweight network like Instagram will suffer being incorporated to a big, clunky thing like Facebook.  It's yet another random body part being grafted to the Monster by a Dr. Frankenstein with a case of HADD.


Mitch Wagner
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Why Facebook did it:
Mitch Wagner   4/9/2012 11:00:08 PM
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- Facebook is buying 30 million users. 

- Facebook is eliminating a major biggest competitive threat. Facebook is still weak in mobile, where Instagram is powerfully strong. There was a danger peoplewould start spending more time on Instagram and less on Faceook. Facebook no longer has to care about that. 

- Acqui-hire: Facebook gets talent and code. 

SplatF's Dan Frommer has more: "Why Facebook's $1B Instagram Deal is Brilliant."

What marketers can hope for: Facebook is developing some sophisticated branding tools, such as Pages and Sponsored Stories. Marrying those with the loyal Instagram customer base is a potential win. 

tinym
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Evangelist
Re: Two thoughts--okay, three
tinym   4/9/2012 9:41:35 PM
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Oooh! Good point about dear old Kodak. Maybe Facebook can buy Kodak too.

Seriously, it's sad to see Kodak go and fake filter-o-rama phone app get a big payday. I didn't see anything about the Kodak announcement until your comment tonight.

kicheko
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Blogger
Re: wha!?
kicheko   4/9/2012 4:54:16 PM
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Facebook may have made an important move by buying out instagram. A greatly summarized tool in the area of photo-sharing which is an important area for brands. Facebook may have had the technical capability to create its own, but definitely it has bought itself goodwill, and hidden behind a different name in joining the successful android bandwagon. Looks like a win for them. For instagram i wonder if they would have been better going it alone, but now its done.

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