6

Facebook’s $1b Instagram buy: an instant waste of cash?

view full story
linux-howto

http://www.itwire.com – Facebook’s cash stash has just been depleted by presumably several hundred million dollars, given that the company’s big Z has announced on his personal page that his company has just paid $1b in cash and shares for a photo app called Instagram. (IT news)

taskli's picture
Submitted by taskli on 04/10/2012 – Made popular on 04/10/2012

Stories similar to Facebook’s $1b Instagram buy: an instant waste of cash?

Facebook’s 10-Q reveals some juicy tidbits left out of its earnings call yesterday. The final price it paid for Instagram was $715 million in stock and cash. Despite rumors that it has stopped growing in mature markets, Facebook’s US user count did increase slightly from 168 million to 171 million monthly users during Q3.

Today Twitter and mobile photo-sharing app Instagram took one step apart from each other, but this isn’t necessarily a sign that Instagram is stepping further into the arms of its new owner, Facebook.

One company’s stumble is another company’s opportunity. And so it should be no surprise to see competing photo-sharing sites attempt to benefit from the very public Instagram Terms of Service fall out, even if it could be argued that it was a much to do about nothing. Enter: Tadaa, the iOS photo-sharing and editing app.

Facebook CEO Mark Zuckerberg said the social network is focused on supporting Instagram’s growth, following the close of a roughly $750 million deal to buy the photo-sharing app. Instagram is the most unusual acquisition in Facebook’s history, considering the huge sticker price, the startup’s small team, and a pledge to stay hands-off with the service.

Yesterday, Instagram launched web profiles. To some, they’re lovely. To others, they’re long overdue.

Instagram co-founder and CEO Kevin Systrom sat down with CrunchFund’s MG Siegler at LeWeb Paris 2012 today to discuss the company’s status after its acquisition by Facebook. According to Systrom, the deal allowed Instagram to focus more on developing the app and grow faster.

Facebook’s purchase of Instagram finally closed today, and here’s what we think happens next. Instagram‘s founders will work at Facebook for a while but some of their team may soon leave for another startup adventure.

There are some erroneous reports floating around that investment firm Andreessen Horowitz is selling its stake in Facebook. Quite the contrary, it’s holding on to all of its direct investment, and Wall Street shouldn’t get spooked.

Current Kickstarter-du-jour Instacube just announced new planned Facebook integration, which will allow it to stream photos from that social network as well as its newly-acquired subsidiary Instagram. The company decided to add Facebook as a stretch goal incentive, and will offer it up when it hits $500,000 in its campaign.