Thursday, April 12, 2012

Facebook Buy Instagram 1 Billion U.S. Dollars

SAN FRANCISCO - Facebook has just announced the acquisition of Instagram worth 1 billion U.S. dollars in cash and stock.
"This is an important trip for Facebook because for the first time we took over the company's products and with so many users," said founder and CEO Mark Zuckerberg said in a statement on Monday (04/09/2012).

Instagram that provides an application for editing images with a wide selection of filters and effects and then the results are shared in social networks are very popular among smartphone users today.

Since its release in January 2011, Instagram is initially only available for the platform IOS, iPhone, has managed to attract about 50 million users.

Number of users kept growing since Instagram is also available for the Android platform last week by increments of users reaching 1 million users every 24 hours.

Although it has been fully mastered, Mark did not plan to directly incorporate Instagram specifically to Facebook. Instagram development will still be done independently.

"We are fully aware of to maintain and build strength and Instagram features rather than simply trying to integrate everything into Facebook," says Mark.

Mark stressed that Facebook and Instagram together provide the best possible experience to share pictures so that they can complement each other.

Acquired Facebook, Instagram Founder Rich Sudden Duo

After Instagram acquired by Facebook with a value of 1 billion U.S. dollars, the two founders Instagram also automatically become a new millionaire. Both are Kevin Systrom and Mike Krieger.

Quoted from the Daily Mail, Systrom rumored to have 40 percent stake Instagram that he is entitled to 400 million U.S. dollars. Later, Krieger has a 10 percent stake so that he earned 100 million U.S. dollars.

The rest will be owned by two companies that invest in Instagram, the Benchmark Capital and Baseline Ventures.

Had taken to Facebook
Although both build Instagram together, Systrom be referred to as the brain behind the success of the application editing and sharing photos.

Since college, Systrom've fallen in love with photography. Because of his love of photography, founder and CEO Mark Zuckerberg was invited to join in Facebook in 2004 to develop a feature photo.

However, Systrom declined the offer because the wanted to finish college and do not want to suffer the same fate as that Zuckerberg dropped out of Harvard University to found Facebook.

"Unfortunately, I decided to stay in school," said Systrom recalled the meeting.

After graduation, Systrom worked at Google and take care of Google Mail. After that, he founded the start-up that creates Burbn, a special location-based Twitter application. Founder of Twitter, Jack Dorsey, was interested in Burbn so he invested in start-up.

Kevin Systrom meeting with Mike Krieger
Kevin Systrom Mike Krieger and his partner are both alumni of Stanford University, California, United States, but they never met on campus.

They've known each other after graduating from college in the Mayfield Fellows program, a program of Stanford who teaches graduates to do business.

Both of them talked to each other and exchange ideas. And, in October 2010, they agreed to set up and sharing photo editing application, which is named Instagram.

Dated October 6, 2010 an important moment because it was officially released in stores Instagram app Apple App Store. From that time until 18 months into the future, Instagram exclusively for IOS-based devices, the iPhone, iPad, and iPod Touch.

In early 2011, Instagram has obtained funding from Benchmark Capital investment of 7 million U.S. dollars, which increases the value of the company to 25 million U.S. dollars. Furthermore, Instagram got back from Baseline Ventures investment of 500,000 U.S. dollars.

On 3 April 2012, the official Instagram slide for the Android platform. Not a week interval, a small start-ups raised 13 employees acquired by the social networking giant Facebook. Acquisition value reached 1 billion U.S. dollars.

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