Facebook’s acquisition of Instagram for such a large amount of money suggests the company is of significant strategic importance, but how specifically.
Firstly, Facebook is already used by millions to upload photos so Instagram further reinforces this position in a market place already congested with picasa (rapidly becoming Google+), Flickr, picplz and many others.
Secondly, Instagram is a good source of location data and could potentially be a way of boosting Facebook’s poor efforts in this area.
Alternatively, facebook could simply be acquiring a competitor to “mothball” it. nike air max cheap uk mens