utility Instagram. This move came amidst some high profile maneuvering from both companies; Facebook recently updated to a timeline layout, and the company’s paperwork for an IPO, where they are seeking to raise 5 billion dollars, cleared the FTC on March, 30th. Instagram was made available on Android platforms last week.
This humble blogger can understand Facebook’s motivation for the purchase; it takes about a minute less to upload a picture to Facebook from an I-Phone when Instagram is used as an alternative to Facebook’s upload feature. But if uploading pictures directly to Facebook seems dated, horizontal integration should have gone out with the dinosaurs.
Though it says Instagram will be an exception, Facebook is famous for purchasing emerging social media sites and shutting them down. In the past both Instagram and Yelp have rejected bids from Facebook. During a second request for funding, Instagram secured $500 million in venture capital.
I’m trying to think of a similar business deal, and the only thing that comes to mind is the purchase of Sterling Cooper by Putnam Powell and Lowe in season three of Mad Men. I’m sure you remember the details surrounding that transaction. Of course this is purely speculation, but as a business blogger I have my fingers crossed that the deal includes some juicy details that have yet to be leaked.
Or maybe it just makes business sense.
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