Facebook just recently bought an app called "Instagram" that allows the user to alter their photos uploaded onto Facebook. With over one million downloads already, the app has been pretty successful. The big question is why Facebook would spend so much on a product that will give no profit. The app was originally close to $2 billion, so the deal was a breakthrough. Also, with the rising competition of users on other social networks (such as Twitter), Instagram could get more people to join Facebook, and is an extra app for current users to enjoy. More advertisements could be made because of Instagram, and although the cost was a huge blow to the company, Mark Zuckerburg (founder of Facebook), believes this will be a breakthrough for Facebook. With billions of users already, Facebook is steadily edging its way up into insurmountable amounts of profit.
Post By: Hannah Cothran
By: Alexei Oreskovic and Gerry Shih
http://www.reuters.com/article/2012/04/10/us-facebook-idUSBRE8380M820120410