It has been one week since Facebook announced its acquisition of the photo-driven social networking site, Instagram, for one billion dollars in cash and stock. Both companies seem to be happy with the agreement. This is just the type of boost that CEO Mark Zuckerburg has been looking for in Facebook's mobile phone offerings. In an interview with a Dutch news reporter, Instagram CEO Kevin Systrom was asked how it feels to sell his company for a billion dollars.
"To tell you the truth, we are a little bit disappointed here. We were aiming for two billion and yeah...well...they only gave a month...so..you know.. sometimes shit happens", said CEO Kevin Systrom, before bursting out into raucous laughter.
This agreement has given social media analysts a great discussion piece over the past week. It is hard to figure out who is the bigger winner: Zuckerberg or Systrom. Systrom, who started out in marketing, says he learned how to code at night with no formal training. Instagram, launched in January 2011, allows users to create fun lighting and mood effects to pictures taken with their iPhone or Android mobile devices. Over five million new users downloaded the application onto their Android device since April 3, catching the attention of Twitter, Google, and Facebook. Facebook, the top social media site, may have created a solution to maintain its edge over Twitter and Google. And, for now, Facebook has the edge.
Â© Les Go, April 2012
Photo courtesy of Wikimedia Commons, Martin Sv?tlÃk.