Facebook CEO Zuckerberg makes the 26-year-old creators, both Stanford classmates, of Instagram very very rich. The 13 employees of photo-sharing service Instagram were celebrating last night after they are set to become multi-millionaires following Instagram s $1billion takeover by Facebook.
New York / NationalTurk – Facebook Instagram deal comes eight years after Instagram co-founder Kevin Systrom turned down Zuckerberg’s first offer to join Facebook in 2004 before it shot to incredible success. But waiting paid off as Kevin Systrom, the 26-year-old CEO of the San-Francisco based photo-sharing service, which was launched just 15 months ago, will net an estimated $400 million while co-founder Mike Krieger, who holds a 10 % stake, and will earn around $100 million.
Now a source close to the company has revealed that a further 10 % stake, equating to $100million will be shared out among Instagram ‘s 13 employees.
If you’ve ever wondered why so many Polaroid-style sepia picture of your friends on Twitter or Facebook, it’s because of Instagram.
The rise and ascendancy of Instagram
You may never have heard of it but the photo-sharing smart-phone application has been downloaded by 27million since it was started October 2010. Instagram allows its users to customise photos by adding special effects or tints before quickly uploading them onto a variety of social-networking sites.
Instagram got so popular that an Instagram photo made the cover of the Wall Street Journal, instagram holds the record as quickest to reach 1 million downloads, occurring on December 21, 2010. Instagram became #1 in the App Store within 24 hours of its launch.
Users, including a lot of celebrities, use it to add stylistic filters, frames, and effects to photos, which can – by tapping one of 16 options – turn a straightforward snapshot of a housecat into what looks like a weathered Polaroid time-capsuled from 1977.
Facebook Instagram deal complete : Us has new multi billionaires
Instagram creators, the 26-year-old Stanford graduates Kevin Systrom and Mike Krieger now stand to share the best part of $1billion that Facebook founder Mark Zuckerberg paid for their creation.
Despite that the fact they didn’t know each other at the university, the pair had a lot in common. Both participated in Stanford University’s Mayfield Fellows program, which educates students in successful and failed start-ups, and gives them internships with an established company and a start-up of their choice.
Now they have another thing in common: incredible wealth.
But more than a few users have accused the service of ‘selling out’ and have increased worries that Facebook will now use their personal data bombard them with annoying ads.
Instagram Facebook deal : $1billion takeover and integration into Facebook
Facebook owner Zuckerberg has promised to build on the Instagram’s existing features rather than simply integrate them into Facebook. And he promised to keep Instagram running as an independent program so it will still be able to be used on rival social networks, such as Twitter.
Facebook CEO Zuckerberg explains the takeover of Instagram : ‘This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all.
‘But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth and wise bringing these two companies who are the best in their respective fields together.’
‘We think the fact that Instagram is connected to other services beyond Facebook is an important part of the Facebook Instagram experience.’
The Facebook – Instagram deal comes just days after Instagram started offering a version for Android phones in addition to its popular Apple app, used by millions of iPhone and iPad users.