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Was founded in 2004 by Harvard student Mark Zuckerberg with the help of two frnds Dustin Moskovitz and Chris Hughes.

On July 2008 Facebook was added to the Apple App Store and on September 2009 Facebook was added to Android phones.
2.9 Billion active users.
72000 employees.
Was founded in 2010 by Stanford graduates Kevin Systorm and
Michel Krieger.
On October 6, 2010, Instagram was added to the Apple App Store
and on April 2012, Instagram was added to Android phones.
1 Billion active users.
Growth of Instagram since inception.
In late 2012, Instagram was purchased by Facebook for $1 billion.
Fourth Quarter and Full Year 2012 Financial Summary
In millions, except
percentages and per share
amounts Q4'11 Q4'12 FY'11 FY'12

Revenue $    1,131 $    1,585 $    3,711 $    5,089

Income from Operations

   GAAP $       548 $       523 $    1,756 $       538

   Non-GAAP $       624 $       736 $    1,980 $    2,261

Operating Margin

   GAAP 48% 33% 47% 11%

   Non-GAAP 55% 46% 53% 44%

Net Income

    GAAP  $       302 $         64 $    1,000 $         53

    Non-GAAP $       360 $       426 $    1,164 $    1,317

Diluted Earnings per Share
(EPS)

    GAAP  $      0.14 $      0.03 $      0.46 $      0.01

Why did Facebook really acquire Instagram?

• Talent Acquisition
• Tech Acquisition
• Customer Acquisition
• Competion Acquisition
Pros of one of Facebook’s most important acquisition:

• Facebook will become an even more powerful medium for photographers

and artists who wish to share their work. 
• It has been a common medium for all people looking to promote their work
and gather followers.
• It was likely be heavily investing in new photo app and storage features that
will likely attract many new photographers and artists and give them new
opportunities to network.
• Instagram will have the capital to develop tons of new features. 
• Instagram itself will now be flush with cash and will have the financial
ability to significantly develop their brand.
• Not only will existing features become more web-friendly, new features will
likely become powerful cross-platform applications.
Cons of one of Facebook’s most important acquisition:

• They risk alienating a niche consumer base. 

• Facebook/Instagram will soon be tampering with an extremely organic
and clique-ish community that may dislike an infusion of hundreds of
thousands of users.
• This larger user base will dramatically speed up the movement of the image
feed, which could lead to unrest as more quality images get buried under a
pile of others.
• It’s unclear whether or how Facebook will store the old Instagram photos.
•  Your previous ability to keep some photos private may now be jeopardized
by Facebook data mining.
• For die-hard Instagram loyalists who liked knowing exactly where their
photos were being kept, the new Facebook world could be unsettling.
Coin flip

• Facebook become more powerful in the social mobile arena.

• Facebook is flooded with exponentially more Instagram photos.
• Financially speaking, the Facebook/Instagram acquisition certainly behoove
both companies in the short run. 
Conclusion
• FTC should have block this deal from happening. As Facebook can’t just be
allowed to buy up and shut down any smaller company.
• Having a monopoly is not illegal – as Facebook does today in the social
networking space.