INTERNATIONAL - Facebook Inc.’s Instagram is estimated to be worth more than $100 billion (R1 351 020 000 000.00), if it were a stand-alone company, marking a 100-fold return for the app was purchased in 2012, according to data compiled by Bloomberg Intelligence.
The photo-sharing platform, which reached 1 billion monthly active users earlier this month, will likely help nudge Instagram revenue past $10 billion over the next 12 months, Bloomberg Intelligence analyst Jitendra Waral wrote in a report Monday.
Instagram could account for about 16% of Facebook’s revenue over the next year, up from 10.6% last year, according to eMarketer data cited by Bloomberg Intelligence.
Facts about the company:
1. Instagram was developed in San Francisco when Co-founders Kevin Systrom and Mike Krieger chose to focus their multi-featured HTML5 check-in project, Burbn, on mobile photography.
2. On March 5, 2010, Systrom closed a $500,000 (R 6755100.00) seed funding round with Baseline Ventures and Andreessen Horowitz while working on Burbn.
3. In October 2010, it was launched exclusively on iOS.
4. After its launch in 2010, Instagram rapidly gained popularity, with one million registered users in two months and 10 million in a year.
5. On April 9, 2012, Kevin Systrom and Mike Krieger sold their 13-person startup, Instagram, to Facebook.
6. Facebook purchased the photo filter app 18 months after its launch for $1 billion in cash and stock, with a plan to keep the company independently managed.
7. February 2011, it was reported that Instagram had raised $7 million in Series A funding from a variety of investors, including Benchmark Capital, Jack Dorsey, Chris Sacca and Adam D'Angelo.
8. The deal valued Instagram at around $20 million (R270 204 000.00).
9. In March 2012, The Wall Street Journal reported that Instagram was raising a new round of financing that would value the company at $500 million.
10. Co-founders of Instagram net-worth is Kevin Systrom (1,67 billion USD) (2018) Forbes and Mike Krieger Net worth: US$500 million (2017).
Facebook shares slipped 3.7 % to $194.23 at 2:12 p.m. in New York, as the broader market, also declined.
The stock has gained 10% so far this year, compared with a 1.5% gain in the Standard & Poor’s 500 Index.
- BUSINESS REPORT ONLINE, BLOOMBERG