Facebook, the social networking phenomenon, is on a mission to eradicate its competition by buying them. The latest acquisition in the social networking giant’s list is Instagram.
Facebook acquired the online photo sharing establishment for £650 million ($1billion) in cash and stocks. The deal is presently under process and is expected to be completed by the end of this quarter.
Facebook has promised to run Instagram independently while retaining attributes like disabling sharing on Facebook. The company published a statement on the web stating the reason behind the takeover was to provide the best photo sharing experience, a service which was instrumental in Facebook’s rise of popularity.
Some users have expressed their disapproval about the takeover. Instagram is a 13-person company with Kevin Systrom as its CEO. Approximately, five million of photos are uploaded daily on Instagram.
Technology pundits are suggesting Mark Zuckerberg’s insecurity as the main reason for the acquisition of Instagram. The photo sharing service, Instagram was in talks with another buyer at a rate of $50 million when Facebook swooped in and doubled the offer.
Facebook has earlier gone public this year in February. The IPO was set at a price range of £18 to £22. The recent news relayed by Facebook was that Mark Zuckerberg is planning not to sell the stock for at least the next 12 months.
Facebook’s acquisition of Instagram is the second in recent years after the buyout of Youtube by Google for £1billion ($1.65billion). Facebook’s founder Mark Zuckerberg seems to be on the trail of Bill Gates, as both the stalwarts negated their competition by buying them.