Week 2 BOC: Instagram

Instagram sells to facebook for  $1,000,000,000...Smart play by Zuckerberg."Mark Zuckerberg just bought instagram for $1,000,000,000?.... He could've just downloaded the free app.” Did he buy the app or did he buy the users? The instagram app is only 551 days old and sells out for a billion dollars, we have companies that are half a century old and aren't even worth 1 billion dollars yet. In my opinion, Facebook just ended its competition and made them join the darkside with an offer you simply cannot refuse. "Facebook is essentially about photos, and Instagram had found and attacked Facebook’s achilles heel — mobile photo sharing.” In addition to receiving the blossoming app, it came with 30 million plus some, users. Facebook just expanded.
Facebook CEO Zuckerberg acknowledged as much when he wrote on his company’s blog, “This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all. 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.”