The tech world is abuzz with the social giant Facebook’s $1 billion acquisition of Instagram, a photo sharing app. The application enables the conversion of regular phone photos into stylish and sleek images with a single touch. Many people, who are not in tune with the tech world, are hearing the name Instagram for the first time. The company didn’t exist 2 years ago. The rise of the firm from 0 to $1 billion, within a short duration of 2 years, is nothing short of spectacular.
Facebook sealed the deal with Instagram 2 days ago. While $1 billion is a jaw dropping amount, what makes the deal incredible is the fact that currently the company does not bring in any money. As unbelievable as it sounds, Instagram has managed to bag $1 billion deal despite having no revenue. Experts are offering different explanations for Facebook’s willingness to pay such a high price. Many believe that the wish to keep the app out to Twitter’s hands was a major motivator.
Regardless of Facebook’s motivation, there is no denying the fact that Instagram has a lot of potential and is backed by a talented team. The acquisition highlights the increasing importance of mobile. This is something that everyone involved in online marketing, including website owners, social media managers and copywriters, needs to ponder over.
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