Geek News: Latest Technology, Product Reviews, Gadgets and Tech Podcast News for Geeks

Facebook Buys Instagram for $1 Billion

Posted by AndrewH at 11:43 AM on April 9, 2012

 

Facebook Shells Out $1 Billion For Instagram

The folks at Instagram – screamingly popular free photo-sharing app – announced about an hour ago that they are being bought by Facebook for the mind-numbing price of $1 billion (definitely billion with a “b”).

Facebook announced here and Instagram humbly announced they were being bought here. Both parties – Facebook’s Mark Zuckerberg and Instagram’s Kevin Systrom  – insist that the photo sharing service would be allowed to grow and operate independently.

Instagram bought for $1 billion cash/stock by Facebook.

The real news isn’t the purchase itself, but the price. One billion dollars in cash and stock is a huge, huge number for an acquisition in Internet-land – already branded a block-buster deal that is sending shockwaves through Silicon Valley (figuratively, of course). Could a photo sharing app possibly be worth that much (keep in mind the company has a grand total of NINE employees)? Is Facebook simply trying to bolster it’s own value before their impending IPO?

It will be interesting to see how this plays out over the next couple of days, for sure.

 

2 Comments

  1. From App Bubble Fueled by Facebook, LinkedIn - Geek News Central at 4:48 am on April 24, 2012

    [...] he knows it or not, Mark Zuckerberg fired the starter’s pistol when he reportedly single-handedly spent more than $1 billion on photo-sharing app Instagram earlier this month. The Facebook CEO apparently cut his board of directors out of the picture and [...]

  2. From Tech Bubble? There’s An App For That. | Geek GawkGeek Gawk at 5:34 am on April 24, 2012

    [...] knows it or not, Mark Zuckerberg dismissed a starter’s pistol when he reportedly single-handedly spent some-more than $1 billion on photo-sharing app Instagram progressing this month. The Facebook CEO apparently cut his house of directors out of a picture and [...]