Facebook Was Smart to Buy Instagram For $1 Billion, It Has Become at Least 10 Times More Valuable Now!

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  • 12 Sep 2012
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  • Facebook is having a rough year after deciding to go public and regretting that decision. One thing they did right was buy Instagram, that back at the time of the purchase had 860k daily active users. Now it has a crazy 11 million, making it worth much more than the $1 billion that Facebook paid for it.

    In case you want figures, Instagram’s growth is 1179% in just 6 months, figures provides by AppData, the industry’s most trusted source of mobile and Facebook application user numbers. There’s also a comparison chart between Instagram and Pinterest, that is a dwarf compared to the giant Instagram now. You should also know that Pinterest recently turn down acquisition offers for more than $2 billion. The thing is that if they waited a bit more, Instagram could have cashed in big time and sold for at least 5 times more than what FB gave them.

    Facebook already has 543 million monthly active users on mobile, Twitter has 140 million daily users on all platforms, but no social network is as big as Instagram on mobile, with 30.3 million monthly users. What’s tough for Instagram is to make money, since they can’t simply put ads next to pictures with filters, right? They could go the Facebook way, with their Sponsored Stories ad unit, that go into the news feed. You know what I would do if I were Instagram? I’d invent automatic tagging of commercial products in photos, like Coca Cola and Adidas and ask money for that system. How about that?

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    SOURCE: Business Insider
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