JENNIFER SABA: Why Instagram should unfriend Facebook
'Separating Instagram off – even if Facebook were to remain its biggest shareholder – might be a wise pre-emptive move'
Instagram could do worse than unfriend Facebook. The photo-sharing site may be worth more than 80 times what the social network founded by Mark Zuckerberg paid six years ago. Now, though, the data leaks engulfing its corporate parent risk becoming a liability. Separating Instagram off – even if Facebook were to remain its biggest shareholder – might be a wise pre-emptive move. Facebook snapped up Instagram for $1 billion on April 9, 2012. The visual app was growing fast and attracting new users, but the price tag still looked like an example of inflated Silicon Valley valuations. Instagram had been valued at around $20 million the year before Zuckerberg knocked on the door of founders Kevin Systrom and Mike Krieger. The acquisition turned out to be a savvy one. And to Zuckerberg’s credit, he allowed Instagram to flourish, retain its brand and remain effectively separate as far as users are concerned. Facebook doesn’t break out Instagram’s financial performance, but it is undoubtedly...
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