Facebook is buying Instagram, according to this post today from Mark Zuckerberg. The purchase price of $1 billion will be paid in cash and Facebook shares. From the blog post:
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.
Instagram rocketed to 30 million iOS users in 18 months and was named iPhone app of the year in 2011. It is one of the best apps for taking and sharing photos from the iPhone. Its square images and assorted image filters let anyone make retro, techno and pretty pictures out of mundane shots of their kids, pets, food. Instagram’s Android version, released last week, got millions of downloads immediately. But $1 billion, if true, is still a crazy number. Instagram doesn’t make any money. Nor did it say it was focusing on revenue. It is still chasing big users. Kevin Systrom, Instagram’s CEO, wrote this to calm down his users in response to the deal. An excerpt:
It’s important to be clear that Instagram is not going away. 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.