Facebook Bought Instagram

INSTAGRAM:

How will Facebook manage its acquisition?

CORPORATE STRATEGY 4G12 BARIL Xavier FIERE Benjamin IMBODEN Thomas JAYARATNE Mellane ZAJAC Damien
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INTRODUCTION
 the 9 of April 2012, FACEBOOK bought the application INSTAGRAM for 1 billion dollars.  FACEBOOK  Social network on the Internet Available in 70 languages 900 million active users 2011: a billion dollar profit  INSTAGRAM  Share your life with photos Created on October 2010 40 million users on April 2012

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PLAN
I) II) III) IV) The Case Objectives of this acquisition (the benefits for Facebook) Synergies who can be created through this acquisition Risks for Facebook and Instagram regarding the postacquisition phase CONCLUSION

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I) THE CASE
 Facebook had acquired Instagram for 1 billion dollars : the 9th of April 2012
 It’s an excellent tool to promote brand awareness  Instagram gets a website! Facebook gets a better camera!

 However, most Instagram users don’t want to merge their accounts with Facebook

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I) THE CASE
 Instagram is the only social network that doesn't try to make your personal photos go viral

 Four months after, the deal is worth 747 million dollars
 Can Instagram survive integrating with Facebook?  Instagram & New micro social networks (like Path or Pinweel) had provided an alternative to escape from Facebook

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II) OBJECTIVES OF THIS ACQUISITION (BENEFITS FOR FACEBOOK)
 Financial side of the acquisition
- Increase his assets portfofio - Monopoly on its market - Delete a potential rival

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II) OBJECTIVES OF THIS ACQUISITION (BENEFITS FOR FACEBOOK)
 aesthetic side of photos - Low quality on Facebook photos - Instagram is very strong on photos aesthetics - Photos are the application the most used on Facebook - Facebook accommodates approximately 5 % of all photos which were ever taken in the world

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II) OBJECTIVES OF THIS ACQUISITION (BENEFITS FOR FACEBOOK)
- Reach telephones of his users - Assure the