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What Prompted Facebook to Pay $1 Billion for Instagram

Facebook recently announced its buying the mobile photo sharing app for the whooping $1 billion creating ripples out there. While Facebook lovers are ecstatic about the deal, Instagram die-hards communicated mixed emotions.

Amid the volatile competition along with the war-of-words (between the rival loyalists) the main question that appears is "Why did the social networking giant Facebook agree to pay $1billion to some company without having revenue?"

We unlock the answers for you inside the following area of the article:

� It could possibly

In accordance with Facebook's S-1 filing the organization has oodles of cash. Reports declare that Facebook features a little below $4 billion funds on hand, strong reason why it could give the deal.

� It wanted to stay ahead in competition

Facebook did not want some other bidder (presumably Google) to seize Instagram and therefore pushed its way into freezing the deal with all the retro-ized photo sharing app company.

� It desired to revamp its mobile apps

Instagram as a mobile app is actually popular and Facebook mobile apps aren't such killers. Apparently Facebook buy more instagram followers planned to cash the mounting rise in popularity of Instagram by integrating it to the company to revamp its mobile apps.

� It wanted to pump freshness

Facebook is a few years of age and several reports declare that it isn't cool anymore. Instagram reportedly had 30 million registered users during the time of purchasing. Facebook wanted to pump the freshness of such users into Facebook and add a fresh attract the widely popular social media.

� It planned to open new avenues for users

Traditionally Facebook is employed to look at others' photos. And the company desperately planned to give itself a picture makeover. All Facebook users are now able to utilise all sorts of cool filters to their Facebook photos and give the top photo sharing experience. "Providing the very best photo sharing experience is certainly one reason so many people love Facebook and now we knew it will be worth bringing these two companies together," said CEO Mark Zuckerberg.

� It wanted to target users with specific info for mobile ads

A food lover will share pictures of food while a swimmer is much more inclined to talk about pictures associated with pool and his/her swimming experiences. Instagram was specific about its user information while Facebook lacked those details. Facebook needed the actual user information to bolster its database and perhaps use it for mobile ads.

� It desired to get real

Over the years Facebook had amassed great wealth and numerous users. Experts suggest that Instagram was allowing users to share real time experiences and Facebook planned to come on with users. Which is one good reason that many original Instagram users still can't be prepared for the fact about its sellout.

� It planned to give users to savor the retro experience

Instagram was created round the idea of providing a retro experience to users. While Facebook was miles behind Instagram it opted to get the app maker instead of buying a rival app.

Facebook is going to be assessed by experts and analysts all over the world to find out what best it lets you do to the business with brand Instagram, all things considered it paid a lot of money to acquire the latter.