News broke late Monday evening that social networking monster Facebook had finalized a deal purchasing the smaller newcomer Instagram for around $1 billion in cash and stocks. Critics and analyst predict that this move by Facebook suggest that the company was threatened by the meteoric rise of the mobile-only application. Even more promising or scary is that the app was restricted to iPhone users before its expansion onto the Google backed Android market on April 3, 2012. The value of Instagram is rumored to be in the range of $300-$500 million. The company has 10 rich ass employees. The New York Times reported that Facebook had made a prior attempt to buy the company in 2011, but no deal was made. With this acquisition Facebook will be able to have a larger hand in the mobile market, as it was originally developed for desk-top use. Besides, if your company is worth an estimated $100 billion what is it going to hurt to drop a billy on what looks to be your biggest competition since MySpace, twitter. This is “big bank take little bank” on the grandest scale.
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