Low-key, underground photo-sharing app Instagram went mainstream on Monday, as the year-old startup was bought by social networking giant Facebook for one billion dollars in cash and stock.
As Reuters reports:
Despite a loyal and active following, Instagram lacks any significant revenue sources. The start-up, with roughly a dozen employees based in San Francisco, reportedly closed a $50 million funding round last week from investors including Sequoia Capital that valued the company at $500 million, according to the technology blog AllThingsD.com.
Facebook, which is expected to launch a $5 billion initial public offering in May, will acquire Instagram's entire team.
"This is an important milestone for Facebook because it's the first time we've ever acquired a product and company with so many users," Facebook CEO Mark Zuckerberg said in a blog post. "We don't plan on doing many more of these, if any at all."
Instagram's 30 million users, already crushed by the app's new-found availability on Android advices, reacted with despair to the revelation that their favorite photo software was going to be used by the masses:
[View the story "Facebook buys Instagram, hipsters react" on Storify]
Facebook buys Instagram, hipsters react
A roundup of enraged Instagram users expressing their disgust.
Storified by Nate Jones · Mon, Apr 09 2012 15:08:13
Since Facebook has bought instagram, I'm barely gonna use it anymore. #jusSayin??? ?
Well there goes the fun of Instagram. Thanks Facebook. “@iPhoneTeam: Facebook buys Instagram for $1 billion in cash.”Kate Allbrook
Facebook is buying instagram -___- ???? welp there goes that funJay Storm™
“@Briittters: Facebook bought instagram for 1,000,000,000 !!!! #ShitJustGotReal lol” noooooooooooooooMAXINE SHAW AT LAW
Facebook just bought Instagram for 1 Billion Dollars. #ruined #austinpowersjokeWill Nowell
RT @moussa_007: Mark Zuckerberg and his cult of Facebook lovers just bought out Instagram for $1 billion. Great, there goes another social network #monopolyAli Hammoud
Tas ir interesanti "Facebook buys Instagram (insert groan here) http://bit.ly/HSW734 #android"Maris Misevics
Smh “@ManilaThrilla2 Hey have y'all heard the news? Facebook bought Instagram for $1 billion”Tailsman of Napolean
@MayaaaNator no lol but Instagram is probably gonna change! And it'll end up all gay like how Facebook is now! :obrianna paulino
RT @PatrickMoorhead: What my 12 YO daughter thinks about the Facebook-Instagram deal. #Instagram #Facebook http://twitpic.com/97ub0zEfra Gomez
Rapper Tyler the creator expressed his displeasure in his own unique way:
If Facebook Buys Instagram, Im Off.Tyler, The Creator
BTW, That Tyler The Creator Instagram Is Fake. Bout To Get That Shit Shut Down.Tyler, The Creator
Instagrams Was Fun While It Lasted Doe.=(Tyler, The Creator
@instagram NNNOOOOOOOO!!!!!Tyler, The Creator
For the curious, here are some other things you can buy for the amount of money Facebook paid for Instagram. Tech bubble, what tech bubble?
The New York Times ($967M)
One billion McDonald's Snack Wraps
Two Subway sandwiches a day for the next 247,000 years
22,200 Lexus convertibles
One hundred thousand bottles of 50-year-old Scotch
The Cincinnati Bengals (worth $850M)