MENLO PARK, CALIF.—April 9, 2012—Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices. The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook.
Big news of the day. Instagram realizes every start-up’s dream: to be bought with 1 Billion $. Was Instagram an upcoming competitor for Facebook? Was it just a good purchase for strengthening a social mobile field position for Facebook?
Facebook is maturing. At some point, getting bigger leads you on the same path: stop innovating and start acquiring[1. The Gowalla purchase was much smaller. The Instagram deal is the biggest one yet.]. Facebook just turned 21 in human years.