Question

2. As a shareholder in Facebook, how do you feel about Facebook’s acquisition of Instagram? Has Facebook met its obligations to shareholders?

Answer 1

When Facebook acquired Instagram way back in 2012 for a whopping $1 billion, the move was seen as strategic as there was growing threat from twitter. Today, this acquisition is dubbed as the best in the Silicon Valley. Instagram has grown mulltifold with with 100+ millions photos and videos uploaded every day. Instagram has roughly 2 million monthly advertisements and 25 million business profiles. The Ad revenue generated in 219 was $20 billion. The overall revenue is expected to reach $14 billion dollars.

With this acquisition and the subsequent organic growth over the years, Facebook has definitiely satisfied the shareholders and given them healthy returns. The growth story havn't reached its maturity level yet and the scope for further expansion in untapped markets and geographic spaces is still huge. The shareholders can't find better a better prospect than this.