Instagram, a photo and video sharing application for smartphones and tablets (and PCs), was first released in October 2010. One year later, it reached one million registered users on iOS alone. Today, Instagram is available for free on the Apple App Store and Google Play Store (formerly called Android Market).
As today, over millions of people use Instagram every month making it one of the most popular social networks out there today. What started as a simple online forum for exchanging pictures has turned into an engaging community with an impressive range of features powered by its growing user base.
|Company Name||Instagram Inc.|
|Founder(s)||Kevin Systrom and Mike Krieger|
|Founded||6 October 2010|
|Headquarters||1 Hacker Way, Menlo Park, CA 94025, United States|
|Net Worth||$110 billion US Dollars|
History of Instagram
The photo sharing app Instagram was founded by Kevin Systrom and Mike Krieger. Their original idea was to use the site to share pictures of their friends as well as their own.
Soon after Systrom and Krieger launched Instagram, celebrities including Martha Stewart and Ashton Kutcher used the service. Eventually, the viral nature of the site worked so well that it caught the attention of Facebook CEO Mark Zuckerberg and others. Thus it became a Facebook-owned company. Prior to that, another photo-sharing app called Picasa had been acquired by Google earlier in July 2010.
Instagram was first released for Apple’s iOS platform in December 7, 2010 and for Android in April 6, 2011. Shortly after Instagram’s release on the Android platform, it was downloaded more than one million times in less than one day. At the time of its first release, the site had about seven million users. It is also estimated that at least 700 million pictures have been uploaded to Instagram since the service’s inception.
The concept of Instagram began when Systrom and Krieger were on their lunch break from Dopplr, an app they had just launched. The reason why they did not use Dopplr was that they lacked confidence that it would be successful. So they decided to experiment with a new idea, which happened to be Instagram.
Systrom and Krieger created the app using the Ruby programming language, Rails web framework, postgreSQL database system, and Amazon Web Services for storage. A year after it was launched, Instagram had more than one million registered users on Apple’s iOS platform alone. Since then, the development team of Instagram has released several versions of their application.
On April 9, 2012, Instagram announced that it has over 30 million active users as well as more than 150 million photos uploaded on its servers.
Facebook acquired Instagram
On April 9, 2012 Instagram announced that it has over 30 million active users as well as more than 150 million photos uploaded on its servers.
On October 16, 2012 Facebook announced that they had acquired Instagram for $1 billion in cash and stock. This acquisition was revealed to have been made in the aftermath of Facebook’s success in hiring WhatsApp cofounder Jan Koum.
At the time of the announcement Facebook stated that it would allow Instagram to operate independently while utilizing their engineering experience and resources behind Facebook through a variety of tools such as reporting tools and advertising. This acquisition marked the first time that Facebook had acquired a non-Facebook related company.
The main reason behind the acquisition was to help Facebook grow and expand to other geographic markets. The purchase also represented a means of strengthening the social media network, which has been having some issues with user growth and overall usage in recent years.
From June 3–4, 2013 Instagram held their initial public offering (IPO) on NASDAQ under the symbol “Instagram”. In its first day, the stock price increased by more than 4%, making it one of the best performing stocks on NASDAQ that day. At its highest point, two days after its IPO, Instagram’s stock price reached about $65 per share. Since then, Instagram has lost a large amount of its stock value due to the competition of other social media websites.
Net Income and Worth
The Instagram business model is based on outsourced input and output. The company does not charge users to use the app, but instead relies on advertising for revenues.
On November 8, 2012, Instagram reported their first quarterly profit of $22.9 million, up from a loss of $57.4 million a year earlier. The company’s revenue had also experienced significant growth from $13 million to $54 million in the fourth quarter of 2012 alone. However, in February 2013, Instagram lost $39.5 million. This was because Facebook dropped its pricing for its image-sharing platform and removed its advertising credits feature as well as other changes that negatively affected the app’s revenue numbers during that time.
Now in 2021 Instagram is worth of $110 Billion and has more than 1 billion users and still increasing.The Instagram users have increased from 2 million in 2012 to 1 billion in 2021.