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Saturday, May 8, 2021

Was Facebook scared of Instagram?


MAHENDRA YADAV | New Delhi, April 12, 2012 13:06
Tags : tech updates | Mark Zuckerberg | acquisition of Instagram | Facebook acquires Instagram |


Earlier this week, founder of world's biggest social network Mark Zuckerberg, announced acquisition of a leading mobile photo sharing platform known as Instagram for $ 1 Billion in cash and stock deal. He made this announcement via his Facebook profile status.
“I'm excited to share the news that we've agreed to acquire Instagram and that their talented team will be joining Facebook...”
This news came out of nowhere and it surprised people around the world including the giants at silicon valley. Now for those of you who don't know what Instagram is, here is a brief description “Instagram is a free photo sharing application that allows users to take a photo, apply a digital filter(Kind of photo editing) to it, and then share it on a variety of social networking services, including Instagram's own.”
Instagram is a San Francisco based company that has attracted more than 30 million users in just one and a half year of It's app launch. But the question is why would Facebook's co founder buy Instagram at twice it's valuation has surprised many venture capitalists.
What I believe is that facebook was scared of Instagram. Yes. Since facebook is essentially about photo sharing and the way Instagram is growing in mobile photo sharing, it slowly became a threat to facebook. Instagram is not just an app rather it's a mobile-only, photo-oriented social platform which facebook wanted to be when they launched their mobile apps for almost all platforms.
Facebook is not a mobile first company and they pay more attention and resources on the Desktop centric version. While Instagram is exact opposite. It is only mobile based photo sharing platform with passionate community.
More importantly, Instagram succeed where facebook itself failed: Viral growth on modern mobile platforms. These are the reasons why I believe this acquisition is not just another acquisition and with this deal facebook successfully crushed future competition and we will see it cashing on this opportunity few years down the line.
Mahendra Yadav Blogs at Social Blog.
(Disclaimer: The views expressed in the blog are that of the author and does not necessarily reflect the editorial policy of The Sunday Indian)
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Issue Dated: Feb 5, 2017