Social networking giant Facebook has bought the image sharing
app Instagram for an amount of $1 billion. The purchase has been done partly
cash and partly in stock. Instagram is a photo-sharing app specially used in
mobiles. Facebook has bought the app to strengthen their dominance in the
mobile photo-sharing world.
Interestingly, Instagram that is only about a couple of years
old has only about 1/14th of traffic as compared to Facebook. However, it has
its own strong points and that is why Facebook was desperate to own the app. Instagram
gives users the power to add photo effects as well as add filters.
Instagram did not have a decent revenue flow, in spite of
having around 30 million users. When the company started the team consisted of
nearly 12 employees. The entire team will now go with Facebook.
This will also be a first time for Facebook when it will be acquiring
a team, a product that has such a huge number of users.
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