347 647 9001+1 714 797 8196Request a Call
Call Me

Does Facebooks photo change after acquiring Instagram?

April 21, 2012
, , ,

Facebook Instagram Revenues

Last week after acquiring Instagram, Mark Zuckerberg is eying to make money from its mobile subscribers. This is something which is bound to happen to save Facebook from growing competition in internet space, especially over mobile.

Don’t forget that Instagram, with its growing subscriber base was itself a threat for Facebook’s market dominance. That is Instagram’s application was on its way to become the easy medium to take and share photos, especially in mobile technology. Moreover Google is giving tough competition in the social web space by launching its Google Plus. Also Google in news for launching the world’s first Glass Computing “Google Glass” which would mean instant clicking, tagging and sharing of photos without even using finger. Keeping precisely its eye on recent development in the internet space, Zuckerberg grab the opportunity to control future cash-cow mobile photo sharing by buying the company itself.

As of now, Facebook makes on money from its mobile subscribers and it is also expected that once the Facebook IPO hits the market, its valuation may fall from its initial value for a short period, that’s when the Instagram will come into the picture to rescue its new owner. That is it will become the new source of revenue for the Facebook. Instagram provides a direct avenue for targeting mobile ecosystem.

Expected revenue contribution by Instagram. Click here to download the excel sheet of our calculations.


About the Author

Pankaj Baheti is a CFA Level III Candidate currently working with Pristine. Prior to Pristine, he was working with Achi Group. He has done his Post Graduate Diploma in Management and loves trekking in the hills of Arunachal.


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.

Popular Blogs: Whatsapp Revenue Model | CFA vs CPA | CMA vs CPA | ACCA vs CPA | CFA vs FRM

Post ID = 14044