Monday, 9 April 2012

Facebook buys Instagram: Great move?



Buys


So, Instagram has been bought by Facebook in a deal worth approximately $1bn US Dollars. I think this is a good move for both parties.

I'm a big fan of Instagram. It's one of the few apps that I use almost obsessively, and I'm pleased that the small team that runs it have snagged themselves killer jobs and a big payday.

The key reason why I'm happy with this is that Facebook seem to understand that the Instagram brand is strong enough to stand on it's own. Unlike Facebook buying Gowalla, which was a straight talent acquisition, this was a purchase of a brand that is already strong enough on it's own, and with Android users now being able to access the app, it has a great chance of scaling, and being wildly succesful. Gowalla, on the other hand, had already lost it's footing as a location-based social network, firstly to Foursquare, and then to Facebook. However, they had a smart team, and are a real asset to the company.

It's early days yet, but I'm cautiously optimistic that this is a deal that suits both parties, giving Instagram a bigger platform on which to reach out and compete, and giving Facebook a chance to tap into a market that was getting away from them (truly creative photo-sharing).