What is Instagram?

Posted on Feb 14, 2014

In a nutshell, Instagram enables you to share photos that you have taken and apply various effects to them – one unusual feature is that it confines photos to a square shape, unlike the typical representation of 4:3 aspect on mobile devices.
Sharing photos via your mobile obviously has lots of uses, but what puzzles me is that Instagram doesn’t actually make any profit – none at all.
So why them would Facebook buy Instagram for a billion dollars? Are we back to the heady days of the 80’s when any company with .com after their name was over-valued and over-rated?
The fact that Instagram exists is entirely down to a small fortune injected by venture capitalists.
So why would Mark Zuckerberg and the Facbook team spend a small fortune on a product that doesn’t generate any profit? Well, the venture capitalists obviously wanted their money back and it was clear that Instagram was looking for a buyer. Needless to say, Twitter made it clear they were interested and that would have meant they could threaten Facebook in the photo-sharing arena.
Instagram must have been laughing all the way to the bank – two multi-billion dollar social media companies both vying for possession of their product – it was time to just sit back and see who came up with the best offer.
I can’t help but feel that the Facebook ‘bubble’ just gets bigger and bigger. The trouble with bubbles is they always burst. Always!

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