Facebook buys Instagram for US$1 billion

We all know that Mark Zuckerberg is not only a big earner, but a big spender as well. The evidence of this is his US$7 million dollar mansion and his recent billion dollar deal with Instagram.

"I know i'm associating Mark Zuckerberg with Facebook, eventhough companies are seperate entities on its own, Mark Zuckerberg still makes all the decisions, so there you go, i'm still right....#In case you were wondering" Quote by Trinikid.

The Billion dollar internet giants recently bought the photo application company, Instagram for US$1 billion dollars. "Yes you read that correctly, US$1 billion dollars" The company which is attempting to raise US$5 billion dollars in 2012 off of stocks is still spending big, even in the presence of competent competitors like Twitter and Google+ who can potentially drive all the traffic away from them.

"Yes...risky move Mark....risky move." Quote by Trinikid

So i'm thinking now, that you may be wondering what's so special about Instagram for Facebook to pull out US$1 billion dollars of hard earn cashed? Well, that's an excellent question, because there isn't much to talk about with Instagram. It's simply an application which allows users to add filters and effects to pictures taken on their iPhone and Android Devices and to share those photos with friends. The app has been able to earn 30 million users, including a few celebrities like Rihanna and Vanessa Hudgens, since it was launched in January 2011.

I strongly believe that the reason behind Facebook's billion dollar purchase was to re establish themselves as the major social network among the competitors like Twitter and Google+.

But I think that we are all seeing how insignificant Facebook is becoming, Twitter is dominating and i'm sure very soon Google + will take over as well, but for now all we can hope for is a re vamped Facebook. Because honestly, i'm getting fed up of the same Facebook all these years. Maybe Instagram is a step in the right direction for the internet powerhouse or is it just a waste of advertisers' and other stakeholders' money. Only time will tell.