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Facebook buys Instagram with competition in mind?

When we woke up today hearing Facebook buys Instagram it didn’t surprise us, but the really interesting part is why they’d want the app in the first place. Mark Zuckerberg didn’t explain why in his timeline posting, although some clues were left within the text.

First up it’s well known that the Facebook app is lacking in a number of ways, and our readers continue to point out that it needs massive improvements, which considering Zuckerberg points to the “talented team” behind Instagram and that they can now “work closely” with this team shouts a lot to us about the benefits Facebook can gain from this buyout, although $1 billion is a lot for Instagram talent.

Confusion over Facebook buying Instagram — we’ve seen a number of articles asking why would Facebook want to buy Instagram, although most of these ask questions and also offer counter answers, but could this buyout be much more simple than most of us would like to believe? Some people point to tax reasons but we say it could simply be about “competition“, and Facebook not wanting the likes of Google to purchase Instagram first.

Facebook doesn’t need Instagram for the data or users, but when it comes to the word “competition” it has every reason to buy the popular app. Facebook knows pictures share well, something that has helped Pinterest grow massively recently, and one way for Facebook to have more photo control is to buy Instagram rather than letting the competition gain that edge. With this purchase in the bag it would stop the competition having more control of conversations around pictures — could it all really be this simple?

We’ve embedded a video below that looks at the $500 million valuation for Instagram, which is half of what Facebook paid, and looks at reasons behind the deal. You can also read about the Android Instagram app needing an update to help make it better than iOS, and how the app is a little distasteful for some pros.

*Identifying Monetised Links - outgoing links that we monetise are marked with an '*' symbol.

Written by Daniel Chubb

Daniel is the CEO of Dansway Communications LTD and founder of; a top blog dedicated to breaking tech news, hands-on reviews and delivers real solutions to everyday consumer electronics hang-ups.

Daniel now spends his time keeping an eye on the latest technology and business trends. Also developing other blogs/news sites in the entertainment and business industries.

Contact Daniel Chubb: [email protected]

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