The social media giant Facebook has just finished a deal to acquire popular photo sharing app Instagram. This deal comes off the heels of last weeks android release which was a sure bonus point in the purchase. The billion dollar purchase might be a high price for a company whose last valuation was at 550 million but Mark Zuckerberg was not taking a backseat to competing buyer Google. Contrary to common opinion Instagram will remain a standalone company with its own branding and design. Founders Mike Krieger and Kevin Systrom have an encountered and entrepreneurial dream; being acquired by an industry giant. Nonetheless for a company that generates no revenue one has to wonder why the purchase for such a hefty price?
The simple answer is control. The tech power houses Apple, Google, Facebook. Zynga and Yahoo have long been acquiring smaller companies that are on the cusp of interweb fame. This power tactic is as old as the internet itself. To remain competitive in an ever emerging world one has to beat the competition. What better way to beat the competition that to own them. With Facebook know having its own platform for photo sharing there is little left for the social media giant to dominate. The social graph is becoming more interwoven with each acquisition. Who's next to be acquired?
AdChoices
