Facebook’s move to acquire Instagram could prove “disastrous”
April 10th, 2012The world’s number one social networking site Facebook this week announced that it had acquired one of the fastest growing mobile photo-sharing app Instagram for a “mind boggling” $1bn.
The move, which comes just few months before the social networking site goes public, caught many by surprise, not least because the $1bn price tag. Instagram, which was only launched two years ago, is popular amongst Android smart phone users, because it easily and conveniently allows them to share recently taken photos straight from their mobile phones.
It has always been clear from the off that Facebook “hates” competition and as such, the move to buy Instagram could be viewed as a drive to swallow the burgeoning service and thus limit any competition. This is not a bad move at all, but the question is, will it be sustainable in the long run? And was it really necessary?
Facebook founder Mark Zuckerberg was quoted by US media as saying the move was an “important milestone” in the company’s history. He said that Facebook would not merely attempt to integrate the Instagram platform into Facebook but rather make a commitment toward “building and growing Instagram independently.” Given the fact that Facebook was originally set up as a photo sharing platform, one could hence understand Zuckerberg’s excitement about the deal. However, one can also argue that the move was not necessary and would add little to the Facebook brand. I feel Facebook has so much going for it at the moment, and it was still going to grow significantly with or without Instagram. For me, purchasing Instagram for $1bn, could be disastrous and prove a waste of money, at least in the long run.



