The number “One Billion” means two key things for both Instagram and Facebook. We’ve all seen how in the past days, a company that had no defined Business Model went from zero to a $1 Billion USD worth in under 18 months. This past sentence rises several questions, so let’s take one at a time.
- How did Instagram survive 18 months without a monetized mobile business?
- Why did Facebook pay $1 Billion dollars for a company that offers an entirely free service with no monetization?
- Where is Facebook standing in terms of number of users right now?
Facebook has 901 million users at the moment, with predictions of it reaching 1 billion users before the year ends. The largest social network is still at a growing stage definitely. More numbers, more power to them.
Overall, many have protested about Instagram’s purchase, threatening to close their accounts (or have closed them altogether). Which makes sense given that it’s human nature to reject change. However, Instagram also grew 40% in number of users in a period of 30 days, give or take. In any case, the world still spins, and two great companies now operate under the same umbrella.