Facebook Just Acquired Instagram for $1 Billion
In the second billion dollar deal made today Facebook has agreed to acquire photo app Instagram. This acquisition is by far Facebook’s biggest and it comes just a few days after Instagram closed a funding round valuing the company at $500 million. The price means that Facebook will also be paying about $100 million per Instagram employee, an astonishing amount.
Mark Zuckerberg broke the news of the purchase on his own Facebook wall. He mentioned that the team would be joining the Facebook ranks and Mark also said, “this is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all.”
In my opinion, Facebook grossly overpaid for the app. Many of these photo filters could have been implemented into Facebook with some simple Mathmatica code.