Three Thoughts On Facebook’s Instagram Acquisition

ImageHere’s my three quick thoughts on the billion dollar deal that took two days to complete. Why did Facebook do this?

1. Reach

The app operates in English, Chinese, French, German, Italian, Japanese, Korean, Portuguese, and Spanish. Facebook wants to conquest China. There are more mobile phones than pc’s…so think about it. Facebook’s mobile strategies have been average, nothing stellar. Instagram is more than just an app that allows you to take pictures, it helps people tell stories through content – that whole picture worth a thousand words thing. With Android users joining rapidly (1 million on the first day of availability), I see obvious overlap of Facebook and Instagram users. What I also see is Facebook’s first relevant app for mobile devices.

2. Data

Forget the photos for a second. They’re of course valuable as content for Facebook, but the gem in my opinion? The location data. How many terabytes of location based data has Instagram amassed? That’s a powerful reason for acquisition.

3. Talent

Yes Instagram was only 13 people but quite honestly who cares? Kevin Systrom is a ninja who built a product more cherished than the Polaroid camera it was inspired by. If Facebook truly is a 100 billion dollar entity, why wouldn’t you look to bring the best and brightest visionaries to the company, even if it cost you a billion dollars to do so.

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