Ovum Comment: Why did Facebook pay so much for Instagram?

Arya MirManagement

Apr 11, 2012 (4 years and 7 months ago)


Facebook has paid $1 billion to acquire Instagram. Since its launch in October 2010 on the Apple AppStore, Instagram has proven highly addictive, especially to younger demographics, growing to upwards of 30 million users, and over a billion photos uploaded. Mark Little, principal analyst at Ovum considers why Facebook would want to pay so much for a single mobile app with no revenues? Is the bubble back?

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