Facebook's Acquisition of Instagram

Summary: In 2012, Facebook, a highly profitable company with $5 billion in revenue, acquired Instagram, a company with only 13 employees, for $1 billion. This highlights the substantial financial resources flowing through Facebook and their capacity for significant acquisitions. Insights:

• Facebook's large revenue in 2012 demonstrates its financial strength and ability to make large acquisitions.
• The acquisition of Instagram for $1 billion despite having only 13 employees illustrates the immense value placed on innovative tech companies.
• The anecdote emphasizes the contrast between Facebook's long journey to profitability and their capacity for rapid, large-scale investments. Proper Nouns:
• Facebook: The acquiring company, showcasing their substantial financial power and market dominance.
• Instagram: The acquired company, highlighting the value of a small, innovative team in the tech industry.
• ABC Nightly News: The news source reporting the acquisition, adding credibility to the anecdote. Research
• What were the primary factors driving Facebook's decision to acquire Instagram?
• How did the acquisition of Instagram impact Facebook's growth and market share?
• What were the long-term effects of the acquisition on Instagram's platform and user base?