Mark Zuckerberg Buy Instagram For $1 Billion

[Faline]

Facebook will hand over $1 billion to buy the photo-sharing software company Instagram, the social networking giant's owner Mark Zuckerberg announced today.
The app, which allows users to alter and post images on their smartphones and tablets, will be paid for in cash and Facebook stock. Facebook will complete its initial public offering of stock next month.
The service - used by 30 million people, including celebrities Kelly Brook, Mandy Moore and Jessica Alba - is increasingly becoming a rival for Facebook, which also relies on people posting pictures.


The deal comes just days after the service began offering a version for Android phones in addition to its popular Apple app.
Mr Zuckerberg said he would keep the site running independently and users will still be able to use it on rival social networks, such as Twitter - yet experts predict the deal could be the death of the app.
Facebook has had a tendency to buy small startups and integrate the technology - or shut it down altogether.
One thing is certain, Instagram's 26-year-old co-founders, Kevin Systrom and and Mike Krieger, have now joined the leagues of the super-rich.

There will also be a huge payday for the venture capital firm Benchmark Capital who invested early and now owns an extremely lucrative portion of the company.
The Stanford graduates met each when Systrom, then working for Google, set up a photo sharing service Burbn. Krieger was a fan. Fifteen months ago they founded Instagram.
On the company blog, Systrom wrote how he and his team are 'psyched' about the deal.
He also reassured users that Facebook would not stop the Instagram app - instead it will continue to exist independently of Facebook.
'Instagram is not going away,' he wrote. 'We’ll be working with Facebook to evolve Instagram and build the network.
'We’ll continue to add new features to the product and find new ways to create a better mobile photos experience.
'The Instagram app will still be the same one you know and love.
'We’re psyched to be joining Facebook and are excited to build a better Instagram for everyone.'
The duo will be sharing their windfall with a few key investors.
According to the Wall Street Journal, in early 2011 the start up raised $7million from venture capital firm Benchmark Capital, which valued the company at about $25 million. Roughly that means Benchmark owned a quarter on Instagram. Benchmark also has a firm member on the Instagram board that approved the sale to Facebook.
The VC firm has invested in other tech companies like Twitter and GrubHub.
Instagram also raised about $500,000 in early seed money from Baseline Ventures, who own an undisclosed percentage of the $1billion company themselves.
The Wall Street Journal also reported that other firms given the chance to invest late last year refused when felt the then-$500million valuation was too high.
In just a few short month they would have doubled their money.
Facebook owner Mark Zuckerberg confirmed the deal on Monday.
He wrote on his own Facebook account: ‘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.

'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 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.
‘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.’

[Brometheus]

in that pic, he looks like the gay guy who jumped off the GW bridge, goodbye.

[ices]

"yeah guys your jobs are safe, they wont shut you down".


Lets see this in the next quarter.

"YOU'RE FIRED!"

[thissiteisfuckedup]

whats so good about instagram? , fuck i wish i was a nerd who knew how to create websoftware, its really paying off for them !

[02gt89]

Shit for $1billopn I'd be set for the rest of my life.

[BigFoot]

That InstaGram shit is sooooo annnoooyyyinnnngg...

[Dynamo47]

I like how Zuckerberg made his fortune and than said he was going to sell Facebook, etc. Well he just bought out his closest competitor and with no such things as "Monopoly Laws" on the internet (to my knowledge) he just killed the competition.

He is pretty damn smart.

[Pyramid_Head]

Congrats to them, nothing like making $1 Billion in one day. That means they will each get $500 Million after they split it.