It was exactly five years ago when Facebook has been declared as one the top business acquisition in the realm of the Silicon Valley: more than $1 billion users bought the photo sharing app named Instagram. At the moment of the acquisition, the Instagram had got only 30 million users with almost zero income. Presently, Instagram has got over 600 million active users, and a large of analyst say that it will soon become the multi-millions dollar business – if it has not reached to this point already.
The purchase today seems real, even if it did not look very obvious in the past. In fact, Facebook was almost to the IPO, and about $1 billion was once thought to be great cost, particularly for the company that didn’t earn much money.
However, one of the most former Facebook executive and previous director of the global business marketing, Mike Hoefflinger, considers that there is another purpose of this acquisition being so viable and valuable: it shows that Facebook could come up with the multiple products at the same moment and also deliver the message to the other business owners that Facebook was the best platform in the whole Silicon Valley to run the huge business growth.
Mike gave his theory in one of his new books, “Becoming Facebook,” which came out last week. He wrote that there lies an endless and priceless worth of the Instagram outline, which proves its presence, as Zuckerberg can turn the visions of production and make his influence in the real game, without carrying out any meddling. A clean and clear message to the top developers in the world is that if you want to make something truly big, then start doing work with Facebook.
He believes that the Instagram acquisition is one of the causes that Facebook eventually laid WhatsApp, although for a very steeper cost tag and was able to reach to the Oculus acquisition. He also considers that it aided Zuckerberg for leading the various social units out of the Facebook business. This includes the big names like the former president of PayPal David Marcus, who presently runs the Facebook Messenger, or the most famous personality of the world of artificial intelligence, Yann Lecun, who helped in building the Facebook’s research section for working out on the artificial intelligence technology specifically.