Facebook has concluded a deal to buy out Instagram for close to a billion dollars in cash and stock. That is a pretty big deal, considering Instagram is a fairly young company. There are some folks in the internet who are saying that Facebook is the new Google, and will swallow up any new good technology that crops up. And there are a few which say that the true reason is ‘fear’. I agree with the latter. I believe trends were beginning to show that, people were beginning to start sharing info about their lives and other things more over instagram photos than sharing updates on FB. I am sure that must have made FB jittery.
Apparently, as a first time ever, Facebook is going to let Instagram function the same way as it is, rather than integrating into FB. And that is one thing that I just do not believe. I have gone through 2 acquisitions, and seen a half a dozen in the EDA industry (where consolidation happens pretty commonly). This ‘show’ of ‘trust’ in letting the new company function as it is, does not last long. Let us see how long they remain independent. I am sure Instagram will get stuffed in the timeline somewhere, very soon.