Facebook aquires Instagram in billiondollar-deal

Facebook aquires photo-sharing app-maker Instagram in a move which was unexpected, especially considering the fact that the social networking giant is about to go public.

The entrepreneurs and investors backing Instagram included some high profile names, including Sequoia Capital, and we expect that their timely exit will be the talk of the Valley for quite a while. Instagram launched in January of 2011 and is currently sporting some 30 million users. While Instagram have a loyal user base, the company is still fresh and they currently have no significant revenues. Richopedia expects both parties to be quite satisfied with the deal. The people behind Instagram received a more than fair compensation and Facebook aquired some talent and a highly strategic fit. Moreover, the deal will be concluded ahead of the Facebook IPO next month.

In a comment to this deal Facebook CEO Mark Zuckerberg concluded: “It´s the first time we aquired a product and company with so many users. We don´t plan on doing many more of these, if any at all.”