Facebook Purchases Instagram for … $1 Billion Dollars

I’m sure by now everyone has heard the news from yesterday- the incredibly popular social photo sharing application Instagram, sold to Facebook for $1 Billion dollars. Thats right, a less than 2 year old company with no revenue is worth $1,000,000,000! That’s more than Dr. Evil asked for when he held the world hostage (watch that scene here). This is the world we live in right now, and everyone, not just those in the Tech industry, is talking about it.

I won’t pretend to know enough to judge whether or not this was a good deal, but it certainly seems to indicate that Facebook believes that mobile is the future. An opinion I share (as do most) and at this point in time Facebook is generating very little mobile revenue, so if this begins to change that, than its a step in the right direction. So this deal not only gets them more mobile exposure, but also eliminates a potent competitor – so in that sense it’s a win.

Increasing mobile revenue is sure to be a scrutinized subject for Wall Street while evaluating Facebook’s stock in the coming year, so I wouldn’t be surprised if they made another acquisition of a mobile company of sorts. Facebook needs to prove that they’re capable of adapting to the changing landscape, one where mobile-first is king.

Let me know in the comments what you think of the deal, or what, if any, acquisitions you might see Facebook making in the coming year