There has been much said and written about Facebook’s buyout of Instagram over the past week. Though for the most part this talk has focused on the $1bn sum shelled out, the real story is the reason for the purchase.
The main reason the company was willing to pay so much is quite simple; it has recognised the importance, both right now and in the future, that photos will play in the world of social media.
Presently, Instagram has no real revenue streams but, with nearly 30 million worldwide users, the potential is clear.
Further still, with more and more photos being uploaded, the image sharing concept is one which is consistently being embraced by consumers at large.
Facebook has also recognised this and, with a clear intention to maintain control of social networking, has decided to ensure it is in charge of one of the most successful ventures of its type.
However, there are other reasons that the acquisition took place.
With a significant number of photos uploaded to the site through mobile devices, the purchase also reveals that Facebook recognise how important connectivity is. This area is certainly one to watch for future developments too.
It is also something that everyone working in the world of search needs to be aware of. Though great content is essential to performing well in searches, how this content is delivered and accessed is ever more important.
Finally, the deal has come at a time when the public flotation of Facebook is just around the corner. Though never out of the public eye, this chatter now will certainly not undermine that event.