Apr 09 AT 12:11 PM Anthony Domanico 66 Comments

Facebook buys Instagram for $1 Billion


Mark Zuckerberg has just announced via Facebook that the world’s biggest social network has agreed to acquire the photo-sharing service Instagram, which has over 30 million users of its own. The deal is reported to be for a staggering $1 Billion, leaving the founders at Instagram dancing in the streets (we assume).

The service will remain as it currently exists for now, though we expect to see tighter Facebook integration soon. For his part, Zuck says that they will largely leave Instagram in tact for the time being, and will look at bringing Instagram technology to other Facebook services.

Update: Instagram has posted on their blog about the acquisition. The founders report that the same Instagram you know and love will remain in tact post-acquisition.

Update 2:¬†Mark Zuckerberg’s post can be found here.

Via: Business Insider

Anthony loves all things technology, from hardware to apps and games. You can connect with him via Google+ or Twitter by clicking one of the fancy doo-dads above.

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  • Trinhbo

    I wonder what iOS users will have to say about this now.

    • kazahani

      Groupies tend to take on the personality of their leader, so I doubt they will stop complaining about Android now…

    • aranea

      Now people who don’t even buy a smartphone will be able to use it. :) I bet apple will come up an i-picture or something that’s inferior and all iphone users will migrate to that and will claim it’s the best thing ever happened to them.

    • jonathan3579

      There goes the neighborhood.

    • spazby

      they will be in shock and denial , as always

  • xray49er

    Time for the instagram ownere to shave their heads and point their pinky finger at their mouth. Congrats thats what we call a come up.

  • T1392

    Wow was hoping Google would’ve purchssed this to help out G+ which to me needs a big spark to get new users & some users back.

  • Shay D. Life

    If you already don’t like Instagram, you can be sure that good old Mark F**kerberg will find a way to make you hate it that much more. Way to go.

    • kazahani

      So did he run over your dog or something?

  • http://alxrock.deviantart.com alxrock

    That’ll buy a whole lotta Scarves and PBR.

    • http://pixelswim.com Steve Heinrich

      Nice :)

  • bwbloom

    Thank god I do not have to worry about whether or not to try using Instagram. This makes it a decisive “NO”. Call me old fashioned, but the more I use Facebook, the more I feel like my brain is melting. I keep promising myself I will deactivate my account, but then I realize that means I will need to log in.

    *Goes back to militia camp in rural Kansas*


    • professandobey

      At least now the pictures Facebook will commandeer as their own to sell in ads will have hipster filters on them.

  • FlexPuke

    Well, Instagram was decent for the week it lasted me. Sucks the this privacy intrusive company has to buy it.

    (As if I can’t put these stupid filters over pictures in PicSay Pro, anyways. w/e.)

    • jonathan3579

      Oh man, the privacy-related irony in your statement great. Lol.

  • http://www.jaxidian.org/update/ jaxidian

    I’ve now decided. I was very uncertain about if I cared about Instagram before. I am now certain that I no longer wish to use it.

    And for $1B, what was Facebook thinking with the impending IPO? That’s gotta be a HUGE hit for them!

  • http://pixelswim.com Steve Heinrich

    The “we can all be amazing, artsy, sometimes misunderstood photographers” trend continues to boom.

    In truth, I use PicPlz so I’m part of a smaller group of the same people :)

  • Bryan Stoner

    Hoho, I’m sorry. Did I just hear $1 billion for cheap filters??

    • inviolable

      Those cheap filters ain’t so cheap anymore.

      (Yes they are)

    • http://www.focuszonedevelopment.com Homncruse

      Seriously. I implemented image filters in my college days in a class on computer vision! I didn’t get a billion dollars… that would help pay the student loan back.

    • counsel dew

      $1B for all of the users, their contacts, …. ;p

      • delinear

        Likely 90%+ of those 30 million already have Facebook accounts (not to mention that $1bn to acquire a percentage of 30million users when you already have 500 million users is just nuts). There’s got to be more to it than that.

  • Delz

    There goes any chance of of sharing directly to Google Plus in the future. I will pass on this app. There are many great Android alternatives.

  • skugern

    I’m amused at the new software business model. Instead of “make software company, sell to Microsoft” it’s now “make iOS/Android app, sell to Facebook”

    • grizzly

      or even “make mobile app, sell to Zynga”

      • professandobey

        I’m still hoping my business model works out: “Make company about to do X, sell to Google FTW!”

  • inviolable

    I’m scared of what will happen once the universal attention whore nucleus expands beyond its perimeter.

  • Rovex

    I knew there was something inherently evil about Instagram. I guess i was right.

  • http://www.technogasms.com Sean Riley

    I hope some of that is earmarked for making the Android app suck less.

  • Matthew Robertson

    I wonder if providing an Android version was a requirement of the purchase.

    • delinear

      If someone offered you a billion dollars, would you tell them yes but only if they did X, Y and Z, or would you scream YES then rush off to take a money bath? Still, its in FB’s interests to have this on as many platforms as possible, especially if it’s another reason to keep potential users away from Google+.

  • bolanrox

    i am guessing the iOS users are deleting the app as we speak. now you will not even need a smartphone to apply filters! :)

    • dcds

      I don’t know why they voted you down. No matter how much prejudice it may show to ios users, the fact is that they were complaining a whole lot when Android entered the instagram world.

      One picture was skyrocketed to internet popularity that read:

      “First the Androids, now this”

      ps.: a&m needs to fix some mobile issues: i can’t scroll the first page news Scroller without maKing a click. And the text edit area has weird green flashes on a galaxy nexus.

  • jeff donuts

    two services that i could give a shit about and dont use. bravo

  • http://midweststitch.com ajonrichards

    Aww crap. I was just about to delete my Facebook too.

    • http://youtube.com/user/jawckamoe Marcus

      I just deleted my Facebook last week…

      • professandobey

        I did that once, the wife got so upset. Too bad there is a way to undelete.

  • http://youtube.com/user/jawckamoe Marcus

    Well its good that Facebook will leave Instagram as it is (even for now at least). I really don’t see why Facebook spent $1 billion on that acquisition though.

    • delinear

      Well, two reasons – Pinterest seems to be growing rapidly so maybe they want something photography related in their pocket to go up against them, and secondly maybe it’s a means of preventing the competition getting hold of this and using it to steal users away. Still feels like $1bn is over-valuing an app that really wouldn’t take long for FB to replicate in house, but I guess they know the benefit of being the owners of the entrenched technology versus brining out a new product.

  • Eric Rossman

    Instagram was initially designed to fill the gap iOS software left in their camera software (and masking the poor camera performance on iOS devices). It took off by giving iOS a much needed MMS sharing option within the camera software (another iOS gap -now fixed I hear).

    Instagram filters mask the short comings of the camera sensor by de-resoluting, pixelating, and color shifting the original image. But I understand why this is appealing to Facebook as the millions of users will be sharing low resolution images by default.

    From my first picture with an Android device, I have been able to apply filters, edit, and share photos directly from the default camera app. I guess I just don’t understand why Android needs the Apple band-aid app (aka: Instagram)?

    • http://www.healthytiger.com Healthy

      In my mind it isn’t really about the filters or editing or even directly sharing to all of your “channels”.

      it is a simplified flickr. just like twitter is a simplified blog (well simplified tumblr which is a simplified blog)

      for my use case it makes sense. a lot of people i know are on it, i can open the app and simply see photos they shared. i don’t have to go through my twitter time line and click links. i don’t have a distracted experience of following rabbit holes like i do when i scan g+ or twitter.

      I used to use flickr a huge amount, but it compelled you to make albums share among groups and participate in forums, which was great, but i got tired of all that work.

      it is a nice sweet spot that the android alternatives can’t fill, i’m not looking for a new camera app, i’m looking for a new simple photo sharing destination.

      i’m bummed though because i’m not on facebook. just not a fan. lets see how long before it gets changed.

      • Eric Rossman

        I sync to G+ and photobucket. You make a good point that the convenience of finding your photos without many click links or time-lines is a compelling feature. +1

  • skugern

    Well, it’s a billion in cash and stocks, so it shouldn’t be that big of an impact, compared to cash only.

  • h0ruza

    I’m not sure what Facebook would really gain from this but I bet the cash is very much welcomed.

    Way da go instagram

  • kwills88

    I should have seen this coming when my mom told me she made an instagram account, that’s all the more reason for me not to sign up.

  • Jorge Vieira

    I really hope that it dosent become maditory to have a facebook to use the service that would suck.

  • mista2x

    Uninstalled app and account closed. That was a fun 5 days…

  • KRS_Won

    It’d be worth it if the Instagram team designed a new FB app.

  • honourbound68

    Is it too late to be hired by Instagram? Lucky bastages :)

  • Max.Steel

    Thank God, I have nothing to worry about. Don’t have a Facebook and only used instagram once to see what they hype was before uninstalling immediately.

  • amgala

    We should’ve seen this coming…Instagram already uses the same color scheme as FB, has a wall, a timeline, a “Like” system, etc.

  • Kindroid

    Value of Instagram just peaked.

  • Dylan Friedman

    To be honest, I’m not that surprised by this. Should be interesting to see if this aquisition makes Instagram worse or better.

  • fletchtb

    Good for the employees at Instagram! A bunch of people realized a dream today and made a lot of money.

    This was not a business that was going to become the next Google, Facebook, Twitter, etc. This was a company destined to be bought up by a larger company and folded into an existing business.

    I am not an Instagram user (yet), but I hope Facebook allows them the freedom to take the product to all the places they intended.

  • smeghead68

    hard to believe from $0 to 1billion in under 2 years. Wish i could come up with a stupid app :(

  • Gir

    All he has to do is ingrate it with FB and its dead. At least that’s how I see it, the product is good to post your pics and make them only available to the two platforms; what makes it appealing to me.

    • Gir

      ehh, * integrate

  • redman618

    Well never had a Facebook to worry about, I guess i wont have an Instagram account to worry about either!!!

  • lawrenceh

    Truly, congrats to the instagram team on their sale. Its what many people dream of.

    But for me instagram just hasnt been that cool for me. Nearly every android camera app i have used has filters. Then i can upload them to any service i want and share as i see fit; so i fail to see its advantage.

    Now when/if instagram is coupled with FB, it will be tied to its eventual death.

  • Alex Belko

    lol I liked instagram until I understood how many stupid people it have, just like facebook. And all these photos of justin beaver and other gayshit on popular page and overall feel of limitation – it was made for iUsers. Lightbox and Pixlr-o-matic are better

  • yankeesusa

    I don’t know why people keep saying that this is the end of instagram. Even though a lot of people may not like the deal facebook is still famous and instagram is still famous and people are going to continue using it. Plus Im sure that the facebook team wont do anything to jeopardize the masses that already like instagram.
    I myself didn’t use it too much so I uninstalled and canceled my account but there are thousands more that will continue using it.
    All i know is that the instagram developers are some mighty happy people right now.

  • awundrin

    Ugh. As if Timeline wasn’t reason enough to dislike Facebook.

  • n25philly

    So in other words:

    1) create stupid app designed for douchy hipsters
    2) ?
    3) Billionaire!

  • txbluesman

    That’s just Jacked Up! A Billion dollars, Really? Why? The app is good, but a Billion? Come on Mark! Now he is just throwing is weight (money) around.

  • Android Telefoni

    Well, Instagram was very annoying to begin with so I don’t really care about this. But that much money? Wow!


  • james

    Is it really worth ! OMG $1 billion flicker was $30 million i think .