Since Facebook agreed to buy Instagram for $1 billion on Monday, traffic on the photo-sharing site has exploded. It’s attracting roughly�1 million users per day.
In addition to the PR from the acquisition deal, Instagram is getting a lift from its recent launch on Google�s (NASDAQ:GOOG) Android platform. Before then, the app was only for Apple�s (NASDAQ:AAPL) iOS.
Right now, Instagram�s has 40 million users. And growth is likely to continue, especially when Facebook hits the public markets — which should happen in about a month or so.
It�s too early see if the Instagram deal will be a success. Keep in mind that the company has only 13 employees and no revenue. What�s more, the market for mobile advertising is still fairly experimental.
Yet the deal does show that Facebook is having challenges with innovation. Why couldn�t its top-notch engineers come-up with a good photo-sharing app for mobile devices?
If anything, the speed of the deal is yet another sign of desperation. According to a report in Venturebeat, Mark Zuckerberg pulled off the Instagram deal in about 48 hours.
Tom Taulli runs the InvestorPlace blog�IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of��The Complete M&A Handbook”,��All About Short Selling��and��All About Commodities.��Follow him on Twitter at�@ttaulli�or reach him via�email. As of this writing, he did not own a position in any of the aforementioned securities.
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