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Loaded: Why Facebook snatched Instagram

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Loaded: Why Facebook snatched Instagram

2:51 /

Best Buy's CEO steps down, cell carriers join forces to fight crime, and Instagram fans threaten to quit after Facebook's $1 billion acquisition.

It's Tuesday, April 20th, 2012. I'm Bridget Carey on cnet.com and its time to get loaded. Facebook and forked over 1 billion dollars to buy Instagram. A social network for photography and it has left many in the Tech Community asking just how did that happen. Instagram has no revenue, has been around for less than 2 years. With about a dozen employees. So how does a photo app get valued that highly. The LA Dodgers cost 2 billion dollars. Is Instagram half the cost of a baseball franchise. Well some analyst say that the deal is made because Facebook sees Instagram as a threat and spent a cool billion to keep the threat under control. Instagram is a pretty big network. There are more than 35 million registered users uploading more than 5 million photos a day. In total more than billion photos have been uploaded. So, when you look at those number, it's clear Instagram is stealing away photo sharing traffic that could have gone to Facebook, but Facebook isn't killing the service. Instagram will remain a separate network and App for now. But despite those promises, Instagram users have cried out online, upset about the purchase. Many they use Instagram to get away from Facebook and if this means Facebook has the rights to their photos they will unsubscribe from the service. Instagram Group popular for their colored filters that made cellphone photos looks aged and retro. Users were then able to share those photos with the Instagram Network or other social networks. Instagram was named Apple's Iphone App of the year in 2011. Best Buy CEO has resigned and will step down from the board of directors. On a press release, best buy said there were no disagreements between CEO Brian Dunn and the retailer and that it was mutual agreement. Dunn started at Best Buy back in 1985 as a store associate and was names CEO in 2009. Director Mike Mikan has been names the Interim CEO. Best Buy recently announced it was closing 50 stores, laying off 400 workers and focusing on smaller boutiques to sell mobile phones. The top four mobile carriers are partnering with the Federal Communications Commission to create a justice league for stopping cellphone theft. The New York Times reports that carriers will create a joint database of lost ,stolen cellphones that will make it easy to track the device and cut off voice and date service. The FFC says that currently its easy for thief to steal a phone and sell it on a black market. Next month, New York City will start replacing public pay phones with internet connected touch screen tablets. The tablets will be free to use for pulling up info on news, traffic and nearby businesses and will of course make money with advertisements. Eventually the tablets will have Skype and be WiFi Hotspots. App developers have a new way to make money in Amazon's Android Apps Store. Now programmers can add any app purchases and Amazon would take 30% of the revenues from the transactions. Just the same as Apple's App Store. Those are your headlines for today. I'm Bridget Carey for cnet.com and you just been loaded.
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