What Prompted Facebook to Pay $1 Billion for Instagram

Facebook . com recently announced its acquiring the mobile photography showing iphone app for a whooping $1 billion creating waves available in the market. While Facebook fans are ecstatic about the deal, Instagram die-hards disseminated mixed emotions. Acheter like instagram

Amid the volatile competition and the war-of-words (between the compete with loyalists) the main question that pops up is “Why did the social press giant Facebook accept to pay $1billion to a firm with no revenue? ”

All of us unlock the answers for you in the pursuing area of the article: 

– That could

According to Facebook’s S-1 filing the company has oodles of cash. Reports suggest that Facebook or myspace has a little less than $4 billion cash on hand, strong reasons why it could afford the deal.

– It desired to stay ahead in competition

Facebook would not want any other prospective buyer (presumably Google) to get Instagram and so pushed it is way into freezing the deal with the retro-ized image sharing software company.

– It desired to renovate its mobile programs

Instagram as a mobile iphone app is absolutely popular and Facebook mobile software are not such criminals. Apparently Facebook planned to cash on the mounting reputation of Instagram by developing it into the company to revamp its own mobile applications.

– That wanted to pump quality

Facebook is some three years old and some reports declare that it isn’t cool anymore. Instagram reportedly acquired 30 million registered users at the time of the purchase. Facebook desired to pump the quality of these users into Facebook and add a fresh appeal to the widely popular social network.

– It wanted to open new avenues for users

Traditionally Facebook can be used to look at others’ photos. And the company desperately would like to provide itself an image makeover. All Facebook users can now use a myriad of cool filters with their Fb photographs and offer the best image sharing experience. “Providing the best image sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together, very well said CEO Mark Zuckerberg.

– It wished to focus on users with specific info for mobile advertisements

A food lover will talk about pictures of food while a swimmer much more likely to share pictures related to pool and his or her swimming experiences. Instagram was specific about its end user information while Facebook weren’t getting those details. Facebook needed the particular user information to strengthen its database and perhaps put it to use for mobile ads.

– It desired to get real

More than the years Facebook got amassed great wealth and millions of users. Professionals suggest that Instagram was allowing users to talk about real time experience and Facebook wanted to come on with users. That is one reason why many original Instagram users still can’t come to conditions with the truth about its sellout.

You may also like