When Instagram founders Kevin Systrom and Mike Krieger announced last month they were stepping away from Facebook, there was a collective gasp: Instagram’s future was suddenly at risk.
So is Facebook’s.
So far, Facebook’s acquisition of Instagram has been a complete success — one of the most important of the internet era. The app, which Facebook acquired for $1 billion in 2012, currently has over a billion users and should generate $8 billion to $9 billion in revenue this year, depending on whose estimate you use. Other achievements are harder to measure, like how Instagram reduced Snapchat as a strategic threat by cloning many of its features, and the way it gives Facebook a connection to youngsters.Continue reading “Facebook will soon depend on Instagram for the majority of its ad revenue growth”