Everyone Thought Zuckerberg Was Crazy to Buy Instagram and WhatsApp

Updated: May 20, 2020

VONMAGZ, Jakarta - Facebook bought Instagram in 2012 for $1bn and WhatsApp for $19bn in 2014 that controlled by Facebook CEO Mark Zuckerberg. Both of these app are the most downloaded app with WhatsApp in third position and Instagram in fourth position.

CEO Mark Zuckerberg has stated in 2010 that "We have not once bought a company for the company. We buy companies to get excellent people in order to have a really entrepreneurial culture one of the key things is to make sure we're recruiting the best people. One of the ways to do this is to focus on acquiring great companies with great founders."

Image : Mark's Instagram

When it acquired Instagram, Facebook opted to build and grow the Instagram app independently from Facebook's main platform; Instagram remains a separate platform to this day. In 2018, Instagram generated an estimated 6.84 billion U.S. dollars in revenue. The photo sharing app’s revenue is projected to more than double to 14 billion U.S. dollars in 2019. Instagram, which now has 400 million users, is helping Facebook stay relevant and “cool” with the younger generation.

Also When Facebook purchased WhatsApp, it was an independent company that had recently been valued at $1.5 billion. Although it is unclear exactly how much revenue WhatsApp generates, some estimates are that WhatsApp revenue will be as high as $5 billion by 2020.