Facebook co-founder Mark Zuckerberg took a significant risk when he acquired WhatsApp and Instagram, especially the latter, which many analysts questioned at the time. However, Instagram’s remarkable growth, from 30 million active users in 2012 to 2 billion in 2024, has vindicated Zuckerberg’s decision.
Leaked emails provide insights into Zuckerberg’s thought process behind the acquisition. He recognized the potential of Instagram’s established network and brand, despite its small team and lack of revenue. He believed that if Instagram grew to a large scale, it could pose a threat to Facebook’s dominance.
Zuckerberg emphasized the vulnerability of Facebook in the mobile market. He saw Instagram as a way to address this and neutralize potential competition. His strategy was to offer a price that the Instagram founders couldn’t refuse, such as the $1 billion they eventually received.
Zuckerberg’s foresight and willingness to take risks have paid off tremendously. Instagram has become a dominant player in the social media landscape, providing Facebook with a significant competitive advantage.
