Instagram worth more than $100 billion
Instagram worth more than $100 billion
In 2012, Mark Zuckerberg bought a fairly unknown photo app, Instagram, for $ 1 billion. At that time, Zuckerberg was completely declared 'foolish' since Instagram only existed for 2 years. According to most analysts, it was an insane amount. But 6 years later, Zuckerberg proves more than his proof. Instagram would be worth $ 100 billion today as a single company.
Instagram had something to celebrate last month. Not only was the new Instagram TV application launched, the social media platform also exceeded 1 billion active monthly users for the first time in its existence. According to Bloomberg Intelligence analysts, Instagram can even exceed the limit of 2 billion monthly users within 5 years.
Instagram can therefore become more popular than Facebook.
Instagram is not only growing faster than Facebook, the app is still growing in the United States, something that mother platform Facebook no longer succeeds. Instagram is also more popular with a younger audience which makes it more attractive for advertisers.
Turnover Instagram increasingly more important for Facebook
Over the next 12 months, Instagram's Bloomberg Intelligence will book around $ 10 billion in revenue. That is about 16% of the total turnover of Facebook and 10 times more than the amount that Zuckerberg put on the table in 2012. Last year, Instagram accounted for just over 10% of the total turnover.
With a valuation of $ 100 billion, Facebook achieves at least a return of x100 in 6 years. Not bad for an investment that was 'doomed' to fail. At the end of June, Facebook had a total valuation of $ 575 billion, of which Instagram accounts for about 17%, in line with the share of sales.
Source: Yahoo Finance - TechCrunch