Monthly Archives: April 2012

Facebook Plays Offense!

Facebook announced Monday that it is spending $1 billion to purchase the social networking app Instagram, which is valued only at $500 million.

With Facebook’s upcoming IPO which is expected to make the social media giant valued at $100 billion, this seems to be a small attempt eliminate some competition.

 Instagram allows its 30 million users to swap vintage inspired photos on any subject matter. Each member is valued at the low price tag of $33 when compared to the value of Facebook users valued at $118.

“This is an important milestone for Facebook because it’s the first time we’ve ever acquired a productand company with so many users,” CEO Mark Zuckerberg said. He then continued to explain that he does not plan to do this often.

I, like many others in the blogosphere, do not believe that this is Zuckerberg’s only intention. We side with analyst Debra Aho Williamson.

“There’s a long history of companies acquiring other companies and saying that they are going to continue to support the service – and then not,” she explained.

With many upcoming milestones in the realm of social media, we will just have to keep an eye on the social media giant and wonder what will happen to sites like Twitter, LinkedIn, and YouTube if Facebook really does go on the offense.

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