Instagram could have been worth $100 billion, Bloomberg reports
The photo-sharing app, Instagram, would have been worth more than $100 billion if it was a standalone company, Bloomberg reported.
We all know that Instagram was purchased by Facebook in 2012 for $1billion and recently I reported that the app has crossed 1 billion monthly active users. Instagram has been capturing the attention of new users faster than Facebook’s main site and is expected to exceed 2 billion monthly users in the next five years. Instagram is still growing rapidly in the US, unlike Facebook. You can read the story posted on TechJuice that why do people are losing trust in Facebook.
When compared to Instagram’s 1 billion active users, Facebook owns 2.19 billion, WhatsApp 1.5 billion and Snapchat has about 100 million monthly active users respectively. Last September, Instagram had 800 million active users but within such a small length of time, the social media app grew tremendously.
Instagram could account for 16 per cent of Facebook’s revenue over the next year, up from 10.6 per cent in 2017.
Recently, Instagram also joined the league of YouTube by introducing its video hub, IGTV. With IGTV, the viewers would be able to watch hour-long videos from different content creators they would be following. Speaking of which, the followed accounts on Instagram would automatically get followed on the new service. Moreover, the users would have various sections to browse like ‘For You,’ ‘Following,’ ‘Popular’ and ‘Continue Watching.’
With the launch of IGTV, and continuous growth of Instagram active users and revenue, the application is expected to grow at least 100-manifolds and hence its valuation is expected to reach $100 billion. But that might not mean a lot to the real founders of Instagram as now Facebook owns the photo-sharing social media platform.
The report has been generated by Bloomberg’s data intelligence platform.