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A Cheat Chart: What Forced Zuckerberg into Spending $1 Billion on Instagram

April 17, 2012

The story of how the social media giant (Facebook) CEO, Mark Zuckerberg bought the new and budding image sharing site (Instagram) for a mouth watering $1 billion with 48 hours is no longer a new to the internet domain.

We all know how financially strong Google is, and many believe that Google would have been in a better position to buy Instagram but it was something Facebook’s founder saw in the growth of Instagram and propelled him to make the billion dollar decision he made.

This post will show a chart that might have turn to a nightmare for Facebook’s Mark Zuckerberg, had he not made his decision to buy the company in its early stage.


Image Credit

Android Adoption

With what seemed like overnight, Instagram was showing us that it would not be limited to a single platform, which is the iPhone or a single demographic (the richer iPhone users.) Instagram was going to make a big hit on Android. And the hit would be successful.

Surprisingly, not all the daily active users that Instagram gets is shown on the chart, the chart only shows those that are active on instagram and are signing in through Facebook. Instagram was already winning the heart of several millions of users from Facebook as the day goes on.

Instagram’s Fund Raising

Another occurrence which propelled Facebook CEO to act as he did, according to Rusli, was the Instagram was able to raise $50 million at just a valuation of half a billion dollars following the days after the Android launch.

It was the large user base Instagram garnered through its Android adoption curve and the fund raising that rang a loud bell in Zuckerberg’s ear. This forced Facebook into making a very fast decision, leading to the $1 billion dollar acquisition of Instagram.

Instagram was going to prove strong in the mobile sect, and was going to be a hard competitor to Facebook because Facebook was weaker in this area, and according to research, most users would be spending their time of mobile devices come 2015.

James is a researcher and guest poster for open door loan site that offers instant loans.
James Jorner

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{ 1 comment… read it below or add one }

1 PrIyAnGsHu @ Make Money Online April 19, 2012 at 11:36 pm

Hmm, that’s the reason why FB has bought Instagram !


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