Instagram is a smartphone application that allows users to add filters and effects to a picture captured by your phone and share it with your friends. When started it was available for iPhone only but later this month they launched the Android version too. They have reported to have 30 million users since their launch in 2011.
But the question is does that make it worth $1 Billion? Facebook, the largest social networking site is all set to pay $1 billion in cash and shares for Instagram to its developers. Yeah, I know it’s shocking. It came to me as a shock too. Facebook CEO Mark Zuckerberg announced the deal on his Facebook timeline a couple of days back; just months before Facebook is expected to go public.
Instagram is a free app and they have zero revenue till date. All of a sudden they’ve jumped to a $1 Billion mark and that is probably the biggest achievement in the history of any company in such a short interval of time. Even though it has been acquired by Facebook, it plans to let the popular photo app to operate independently from the company.
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