One of my favoriate photo apps is Instagram. I have been using it for probably 7 months or so and loving it. Not only does it have cool features it also makes many of the photos my iPod Touch takes better. Its overall, in my estimation, the best photo app out there. Which is probably why Facebook bought it out for (in doctor evil voice) 1 BILLION DOLLARS. Now I’m not economist but that seems odd. How is a company that has only been around for 17 months and that hasn’t made a dime worth 1 billion dollars? It isn’t.
However I think Facbook is doing two things here. First they see potential in a company that does what it does well. There are other photo apps out there that do the same thing as Instagram but just not as well (Streemzoo & Hipstamatic). Facebook most likely sees the 1 billion dollars as an great investment in their photo portfolio and no such much what is really worth. This is a good thing because a service that people like, Instagram, will now be a part of a site they go to everyday, Facebook. Secondly, Facebook probably saw a bit of competition. If you look at how much content is uploaded a day on both Facebook and Instagram you can see a clear winner in the photo market. Insagram is rocking the socks off of any photo site by making it both easy and fun. Facebook, being a business, can’t allow that social market to be lost. They need it to stay relevant and on top.
I don’t like the idea that Instagram sold to Facebook. Financially for them it was a great idea, but I think long term it will kill their product. Facebook, for all its good, tends to take great ideas and try to force them into their mold. There should always been great small startup companies that eventually develop into their own thing. If Facebook and Google just buy up everything were are all the good ideas? We need both big business and small business.
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