Facebook Buys Instagram for $1 Billion
So it’s official: Facebook announced this morning
it will acquire photo-sharing service Instagram for a nifty $1 Billion
in cash and stock. While it’s a pricy tag for what some describe as a
glorified photo filter, the question remains of what will Facebook do
with it?
Years ago when search giant Google bought out
YouTube, a plethora of social commentary emerged fearing Google would
destroy the world’s favorite video sharing site. Did it? Not a chance.
Google’s acquisition of the site did not stop users from posting their
favorite copyrighted TV shows, creating exuberant fan personas (check
out Very Mary Kate), or butchering cover renditions. So rest assured, your daily food uploads can still continue with Instagram.
Be that as it may, so-called Facegram
haters have begun popping up in droves protesting the buyout,
particularly in regards to Facebook's previous privacy concerns and how
the social-media giant may use Instagram photos (read: how they plan to
sell them). This has lead to many Instagram users heading for similar
third-party applications instead. With that in mind, it will be
interesting to see if Facebook utilizes any patents to crack down on
similar software to cement its marketshare.
The service could suffer an identity crisis if
Facebook decided to integrate the service as Facebook Insta-photo or
similar. While at the moment Instagram CEO Kevin Systrom has taken to
his blog “to be clear that Instagram is not going away,” it will take
time for Facebook to create a game plan for the company.
Facebook founder Mark Zuckerberg commented that
it’s in the company’s best interest to build on Instagram’s strengths,
rather than integrate. We’d imagine this comes from the fact that mobile
users would rather update by snapping a pic than by text, something
that has been hurting Facebook recently and could be a logical avenue to
expand into. With that being said, Facebook could be focusing on the
future and the potential to allow Instagram users to upload videos as it
keeps in-line with advancing phone hardware and network infrastructure.
Posted by Unknown
on 4:17 PM.
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