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In 2012, Facebook bought the photo sharing application of 13 people Instagram. Six years later, it seems reasonable to say that it was the most intelligent purchase of the company, the application being estimated at $ 100 billion.
This is an incredible 100% return on the $ 1 billion initial purchase, especially considering its upcoming social media acquisition, WhatsApp, which cost Facebook $ 19 billion in 2014. ( The Oculus virtual reality company also cost twice as much as Instagram.)
The new price tag comes from a Bloomberg Intelligence report shared with Quartz. Its author, analyst Jitendra Waral, also estimates that Instagram is expected to reach 2 billion users – catching up with Facebook itself – over the next five years. Instagram recently announced that it has reached 1 billion monthly users.
Instagram, writes Waral, "should be able to double traffic at a faster pace because the adoption curve of the platform has exceeded the core of Facebook."
The financial implications of the acquisition were huge for Facebook, which was able to easily replicate the Feed News ad template for the photo application. His new product, a broadcast platform called Instagram TV, could also boost activity, Waral adds.
Users spend almost as much time on Instagram as on Facebook. According to a recent report, this represents about 53 minutes a day for Android users. Market research firm eMarketer recently estimated that Instagram now accounts for nearly 30% of Facebook's net advertising revenue, which can reach 40% by 2020.
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