Facebook has snagged the highly popular photo-sharing application Instagram for $1 billion in cash and stock. It is among the biggest acquisitions in the social media space, second only to Google’s $1.65 billion stock-for-stock purchase of YouTube in 2006. The deal, both in size and intent, is very much a departure for Facebook. Until now, its acquisition strategy has been characterized by much smaller deals, usually made with an eye to pulling in the target company’s talent base. Otherwise, Facebook has focused mainly on building products internally instead of buying them.
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Facebook Has Big Plans for Its Billion-Dollar Baby
Posted by: Erika Morphy April 10, 2012 09:40 AMFacebook has snagged the highly popular photo-sharing application Instagram for $1 billion in cash and stock. It is among the biggest acquisitions in the social media space, second only to Google’s $1.65 billion stock-for-stock purchase of YouTube in 2006. The deal, both in size and intent, is very much a departure for Facebook. Until now, its acquisition strategy has been characterized by much smaller deals, usually made with an eye to pulling in the target company’s talent base. Otherwise, Facebook has focused mainly on building products internally instead of buying them.