Facbook’s Instagram buy out likely 'not a one off’

Many analysts have lapped up news that Facebook had acquired 549 day old Instagram for $1bn – making an insta-profit for its 13 staff.

Research undertaken by Enders Analysis however has found that the deal may in fact show how “precarious” Facebook’s own market leadership might still turn out to be.

In their report Enders said: “This is not a one-off – many more companies will use cloud services, mobile and social to achieve similar growth in future.

”This acquisition comes in the context of explosive growth in mobile and social and an accompanying land grab by Facebook, Amazon, Apple, Google and many others. More eye-catching deals are likely to follow.”

John Glenday

John Glenday is responsible for compiling The Drum's daily morning bulletin and ensuring that overnight breaking news is covered while you're still brushing your teeth. Can also make a mean cup of tea.

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