What's the Latest Development?
Facebook has purchased Instagram, the photo sharing app, for a cool $1 billion. So how will that purchase affect the way you already use their products? Look for Facebook to extend its limited mobile reach using Instagram's exploding subscriber list, which has gone from 5 to 30 million in just the last 10 months. The social media king will also use Instagram's photo curating technology to improve its Timeline platform, which is far more image heavy than users' previous walls and has, so far, faced stiff resistance from some users.
What's the Big Idea?
Instagram is currently known as a photo sharing app but with Facebook as an ally (and a boss), it will seek to become a social networking platform in its own right. To date, Instagram's creators had resisted monetizing the platform to keep from smudging users' limited mobile screen space with advertisements. Now, Facebook is expected to encourage Instagram users to begin following company profiles on its site through branding images posted on Instagram. With its purchase, Facebook has also gained Instagram's talented team of engineers.
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