Instagram is a social media platform that runs on the mobile, internet, and desktop. It is mainly based on photos and video sharing rather than text, like many popular platforms. The platform was developed by Kevin Systrom and Mike Krieger in October 2010. Mike Krieger helped Kevin upgrade his first invention known as Burbn.
In April 2012, they sold the company to Facebook for 1 billion dollars. Since then, Facebook has developed it to become one of the most used social media apps. It has approximately 1 billion monthly users in 2020.
The real owner of Instagram in 2021
Facebook was the actual owner of Instagram since 2012 when it bought it from its founders. Mark Zuckerberg, who is Facebook’s CEO, made it clear that they will build the two apps separately. They have no intention of integrating and developing them as one platform. However, some features, such as advertising, are shared between the two platforms.
Facebook bought Instagram in its early stages when it had about 30 million active users and only 13 full-time employees. During that time, Instagram was not generating any income; hence, many people questioned that move by Facebook. This is because the company seemed very small as compared to others that they had invested in before.
However, it seems that buying Instagram at 1 billion dollars, which was double its worth that time, is a smart move. Now the company is bringing in more profit to Facebook through advertisements. These adverts are pictures and video-based. The company that started with only 13 employees, and no benefits has become one of the fastest-growing social media platforms. It has a large fan base than Twitter, Snapchat, and Pinterest, all combined.
The founders of Instagram
Kevin Systrom and Mike Krieger originally founded Instagram.
Kevin Systrom is an American entrepreneur and computer programmer. He has an estimated net worth of $1.6 as of 2019. In April 2012, Kevin, together with his collogue, sold Instagram to Facebook for $1 billion. At that time, he owned 40% of the shares, so he took home about $400 million.
He said that FB had the best resources to develop the company, and that’s why he accepted the deal. Furthermore, Facebook was committed to growing the company to higher heights. He could have waited for the company’s price to rise further, but his interest was on the impact Instagram could make to improve people’s lives and the community.
Although Kevin Systrom sold the company, he remained the CEO to continue with its developments. Now he makes decisions by consulting the mother company. Besides, he also helped to develop an advertising feature on the platform that allows businesses to advertise products and services in the form of photos.
In October 2016, Kevin tied the knot with, Nicole Schuetz. She is the CEO of a clean energy investment firm known as Sutro.
Mike Krieger is a co-founder of Instagram even though Kevin remains as CEO and the face of the company. When the company was sold to Facebook, mike took home an estimated amount of $100 million because of the 10% shares that he owned.
He was a software developer at Microsoft before creating Instagram. Mike was responsible for updating the platform for three years when it was public.
Other Shareholders of Instagram
The remaining shares were owned by investors that funded the development of the platform. Each investor got a piece of the 1 billion, depending on the number shares they had at that time. Some of these investors include benchmark capital and Andreessen Horowitz, which are both private equity firms.
Interesting facts Instagram
- It debuted on 6th October 2010
- Instagram has an estimated value of $102 billion.
- The name Instagram is a mush up of “instant” and “telegram.”
- It is estimated that 8% of the accounts are fake
- A picture of a dog was the first to be posted on the platform by Kevin, the Co-founder.
- Posts that contain a hashtag gat 12.6% increased engagement
- Pizza is the most Instagrammed food
- US, Russia, Brazil, Turkey, and the United Kingdom are the top countries that use Instagram.
- The platform contains at least 1 million advertisers.
- The heart emoji is the most widely used.
- Google records at least 16 million searches for the term Instagram
- It is the second platform with most engagements after Facebook.
- About 96% of top US fashion brands use Instagram
- An egg is the most liked picture on the platform
- Majority of Instagram’s users are aged between 18-29
- Facebook is the current owner of Instagram
- The initial owner of Instagram Kevin is still the CEO even after selling the company to Facebook Inc.
Frequently asked questions about Instagram
Can I view Instagram without an account?
Yes, you can view photos of people and brands on the web browser without an account. However, it is not possible to do so on the app. Besides, it is not possible to view private pictures without an account.
Is selling Instagram accounts illegal?
It is illegal, according to Instagram’s terms of service, but no one will arrest you for doing that. The only risk you can face is being suspended on the platform, or your account getting disable. However, people still sell accounts anyway.
What is the primary purpose of Instagram?
The primary purpose of Instagram is to share photos and videos with the people you love. You can be able to add a short description, tag others edit pictures, and engage with other people. Instagram has developed into a big platform where eCommerce and social media influencer businesses are mushrooming. Some people even make a full-time income by selling products on the platform.
How can I make money on Instagram?
The easiest way is to sell products directly to your followers. Besides that, you can do affiliate marketing of the products that you love using. Also, you can work with various brands as an influencer. Lastly, you can sell photos.