Facebook, has announced the purchase of the mobile photo-sharing service Instagram for $1 billion in cash and stock.
This is an interesting move considering that the 13-employee startup based inSan Franciscohad neither business model nor revenue.
So why did FB pay so much for this app? Well, Instagram is actually not just a photo-sharing service but has become, since its launch in2010, avery powerful mobile social network that lets you share photos with friends.
So we can see this more as a defensive move from FB to avoid losing Instagram to one of its competitors (Twitter?) and to maintain its investment in the Social Mobile space before its own IPO later this year.