Facebook Buys Instagram

Instagram Logo

Instagram is a photo sharing app and social network popular with iPhone users. The app recently also moved to Android, and now it looks like they’ll be moving to Facebook a little more permanently. Facebook announced that they were buying the company for a whopping $1 billion in cash and stock.

Why so much for a company not worth that much on paper? There may be other speculation on the issue, but I’d say this is all about fending off Google. Google+ allowed faster and better photo sharing than Facebook, and Google purchased Picnik to integrate the photo editing features into Google+.

Instagram won’t lose the social networking integration users know and love, at least not immediately, but I have to wonder if the Instagram network may not go the way of Picnik once the purchase is complete.

What say you? Is Facebook’s purchase a win or loss for users?

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Marziah Karch has written books on topics like Android and LEGO robotics. She is also writes for About.com for money and GlitterSquid for fun. She lives in Portland, Oregon and still works a day job. Because she apparently has free time on top of all that, she is also a doctoral candidate researching the information behavior of independent game designers.