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April 11, 2012

Instagram 's Rise to Billion $ Valuation,as Facebook Acquires the 2 yr old Start up

 Its seems Instagram is the new " latest  Tech Kid in Town" who has just hit a Goldmine . Its none other that Facebook  which has decided to  pay $1 billion in cash and stock for Instagram, a 2-year-old photo-sharing application developer, in its largest-ever acquisition just months before the No. 1 social media website is expected to go public.  On April 9, 2012, Facebook announced it would acquire the comp and its 13 employees) for approximately $1 billion in cash and stock, with plans to keep it independently managed. 

Instagram was s now growing twice as fast as Flickr. This great Infographic from Followgram shows the journey that Instagram has taken so far. Some of the highlights:

  • There are currently 7 million users worldwide, uploading 1.3m photos each day
  • Over 150 million photos have been uploaded in total, on average 15 per second
  • Instagram has enjoyed 78 million likes on pictures so far!
  • 8/10 of all photos uploaded have had a filter added
However as per true blue Silicon Valley tech trends, where It startup valuations have soared in recent years. It highlights the rising stakes in the social networking market in which services such as Facebook need to constantly excite consumers with new features and mobile.Online photos are supposed to be a core Facebook competence. Paying $1 billion for the popular picture-sharing app may boost the social network in mobile. But paying over the odds for revenue-free rivals is usually the hallmark of anxious, mature firms - not a growth company seeking to go public at a $100 billion valuation. 

Th
e price was  a stunner for both the for an apps-maker without any significant revenue and also , comes as a surprise  and encouragement for the countless burgeoning  US "tech Start ups" who's hopes of turning their Garage Start up to becoming multi billionaires , by virtue of their idea in the mobile to digital ecosystem