{"id":1407,"date":"2020-11-19T08:50:33","date_gmt":"2020-11-19T08:50:33","guid":{"rendered":"https:\/\/buzzvoice.com\/blog\/?p=1407"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T00:00:00","slug":"when-did-facebook-buy-instagram","status":"publish","type":"post","link":"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/","title":{"rendered":"When did Facebook buy Instagram?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"850\" height=\"675\" src=\"https:\/\/buzzvoice.com\/blog\/wp-content\/uploads\/2020\/11\/When-did-Facebook-buy-Instagram_.jpg\" alt=\"\" class=\"wp-image-1850\" srcset=\"https:\/\/buzzvoice.com\/blog\/wp-content\/uploads\/2020\/11\/When-did-Facebook-buy-Instagram_.jpg 850w, https:\/\/buzzvoice.com\/blog\/wp-content\/uploads\/2020\/11\/When-did-Facebook-buy-Instagram_-300x238.jpg 300w, https:\/\/buzzvoice.com\/blog\/wp-content\/uploads\/2020\/11\/When-did-Facebook-buy-Instagram_-768x610.jpg 768w, https:\/\/buzzvoice.com\/blog\/wp-content\/uploads\/2020\/11\/When-did-Facebook-buy-Instagram_-235x187.jpg 235w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><\/figure>\n\n\n\n<p><strong>Facebook bought Instagram on April 9<sup>th<\/sup>, 2012. <\/strong>However, legally the deal was only completed a few months later when the Federal Trade Commission in the US approved of the trade.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong>Facebook Bought Instagram\u2014Now It&#8217;s Your Turn to Buy Engagement!<\/strong> \ud83d\ude80<br>Just like Facebook made a smart move acquiring Instagram, you can make a smart move too! Get <strong><a href=\"\/facebook\/post-likes-shares\/order\">real likes on Facebook<\/a> &amp; <a href=\"\/instagram\/likes\/order\">Real Instagram Likes<\/a><\/strong> from <a class=\"\" href=\"https:\/\/www.buzzvoice.com\/\">BuzzVoice<\/a> and elevate your social presence. Buy now and watch your engagement soar! \ud83d\udd25<\/p><\/blockquote><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d18039d2103\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d18039d2103\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/#Why_did_Facebook_buy_Instagram\" >Why did Facebook buy Instagram?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/#For_how_much_was_Instagram_bought\" >For how much was Instagram bought?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/#Why_didnt_Facebook_pay_more_for_Instagram\" >Why didn\u2019t Facebook pay more for Instagram?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/#Why_didnt_Instagram_remain_independent\" >Why didn\u2019t Instagram remain independent?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/#Was_the_purchase_of_Instagram_by_Facebook_a_breach_of_anti-monopoly_laws\" >Was the purchase of Instagram by Facebook a breach of anti-monopoly laws?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/#Is_the_purchase_of_Instagram_the_best_bid_Facebook_ever_made\" >Is the purchase of Instagram the best bid Facebook ever made?<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_did_Facebook_buy_Instagram\"><\/span><strong><em>Why did Facebook buy Instagram?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>From a business standpoint, we can see a couple of reasons<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fear of competition <\/strong>&#8211; better to buy rather than to spend and compete with the risk of losing.<\/li>\n\n\n\n<li><strong>Huge upside &#8211; <\/strong>Instagram was growing at a faster rate than even Facebook ever was.<\/li>\n\n\n\n<li><strong>Great merging possibilities &#8211; <\/strong>Instagram would help Facebook grow as a brand and as a business.<\/li>\n\n\n\n<li><strong>Experiments ground &#8211; <\/strong>Facebook could test out some features (especially camera-related) on the app before rolling it out on their own platform.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_how_much_was_Instagram_bought\"><\/span><strong><em>For how much was Instagram bought?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Facebook bought Instagram for 1 billion USD. The deal payout was divided into 300 million USD in cash and the rest was paid in Facebook stock because Facebook went public just about at the same time.<\/p>\n\n\n\n<p>It is calculated that the co-founder of Instagram Kevin Systrom gained around 400 million USD just from this deal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_didnt_Facebook_pay_more_for_Instagram\"><\/span><strong><em>Why didn\u2019t Facebook pay more for Instagram?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Because at the time it was one of the largest purchases in the social media market. You have to understand that Instagram was valued at 500 million USD not too long before Facebook paid double of that.&nbsp;<\/p>\n\n\n\n<p>Of course nowadays Instagram is worth hundreds of billions dollars, but it wasn\u2019t nearly as valuable back then.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_didnt_Instagram_remain_independent\"><\/span><strong><em>Why didn\u2019t Instagram remain independent?&nbsp;<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It\u2019s hard to say because no one apart from the co-founders can really answer these questions. But common sense indicates three major co-relating benefits of this deal:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Eliminating the competition<\/strong> &#8211; Facebook would really probably try to throw their glove at Instagram by launching a competing app sometime in the future. It would be a very tough competitor. Facebook was working on the Facebook Camera app during this time.<\/li>\n\n\n\n<li><strong>Flexible terms &#8211; <\/strong>even though now owned by Facebook, Instagram is still an independent operation which does most of its development individually and separately from Facebook.<\/li>\n\n\n\n<li><strong>A lot of cash &#8211; <\/strong>would you turn down 300 million in cash and 700 million in Facebook stock? Probably not.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Was_the_purchase_of_Instagram_by_Facebook_a_breach_of_anti-monopoly_laws\"><\/span><strong><em>Was the purchase of Instagram by Facebook a breach of anti-monopoly laws?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Both the FTC in the USA and the corresponding UK agency ruled that this purchase was not against anti-competition rules and\/or laws.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_the_purchase_of_Instagram_the_best_bid_Facebook_ever_made\"><\/span><strong><em>Is the purchase of Instagram the best bid Facebook ever made?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Probably so. Considering the fact Instagram is worth somewhere around 200 billion US dollars, their investment brought in a 200:1 return over 8 years. Divided over time, that\u2019s 1200% every year or almost 7% each day&#8230; These are ridiculous numbers.&nbsp;<\/p>\n\n\n\n<p>If we compare Whatsapp, Facebook bought it in 2014 for 19 billion USD. It is now worth around 50 billion US dollars meaning the value increase is somewhere between 2.5 and 2.7:1. It\u2019s still an amazing investment but it\u2019s nowhere close to the grandness of the Instagram purchase.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Facebook bought Instagram on April 9th, 2012. However, legally the deal was only completed a few months later when the Federal Trade Commission in the US approved of the trade. Facebook Bought Instagram\u2014Now It&#8217;s Your Turn to Buy Engagement! \ud83d\ude80Just like Facebook made a smart move acquiring Instagram, you can make a smart move too!<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[94],"tags":[],"class_list":["post-1407","post","type-post","status-publish","format-standard","hentry","category-faq"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>When did Facebook buy Instagram?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/buzzvoice.com\/blog\/when-did-facebook-buy-instagram\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When did Facebook buy Instagram?\" \/>\n<meta property=\"og:description\" content=\"Facebook bought Instagram on April 9th, 2012. 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