Instagram now worth $35billion from $1billion

When Facebook bought popular photo sharing site, Instagram, in 2012 for a whooping $1billion, a lot of people were shocked and felt it was overpriced. Today, it is now worth 35 times that amount at a whooping $35billion. The deal has turned out to be quite a bargain for the Social media giants.

The new estimate comes courtesy of Citigroup which already had the company valued at an impressive $19billion. The increased value is related to Instagram's announcement last week that it now has over 300 million active monthly users and growing faster than expected.

While the analysts acknowledge the $35 billion valuation is just an estimate at this point and is dependent on several factors, their optimism is based on the fact Instagram is under monetized.  Citigroup believes that Instagram could eventually contribute around $2 billion in annual revenue for Facebook.

Last week, the company also embarked on a cleaning process, ridding it of all spam accounts created. The loss of followers was astronomical for some, for example, Justin Bieber lost 3.5million followers (Wawu!).

The Nigerian self styled instagram queens too lost most of their followers, majorly because they always buy followers. Anyways, they never experred it . Maybe twitter should consider doing this too.

techspot.com

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