Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Social Media

Facebook bought Instagram for $1B; it’s already worth $35B

(Social Media) Instagram has gone from a $1B to $35B company in just two years, making big moves and paving the path toward an extremely profitable future.

instagram ads

instagram ads

Instagram: best tech buy in recent history?

Instagram sold to Facebook for a whopping $1B in 2012, and at the time, it dominated headlines for demanding such a high price tag. Fast forward just two short years, and Citi says the value is now $35 billion.

The company is in the middle of major changes, not only making the ballsy move to cut spam accounts (thereby reducing number of users and impacting most peoples’ follower counts), but adding new filters and features in the form of a “tray” that allows you to put your favorite filters front and center. These things sound small and simple, but for an app that has a single function and is designed to be simple, it’s huge.

Previously, Citi valued the brand at $19 billion, and has now increased that number by nearly double, as the app has performed better than even the most conservative projections regarding monetization and user growth. The value is calculated by analyzing future earnings for Instagram.

The year of revenue streams

Citi analyst Mark May says this coming year will be the year that revenue streams off Facebook take off, not just from their ad network, but from Instagram, WhatsApp, and other brands under the FB umbrella. Instagram alone is projected over time to contribute over $2B in “high-margin revenue at current user and engagement levels if fully monetized,” May noted.

The app has launched a rich advertising suite, offering analytics and targeting, and has even expanded outside of the U.S. and adding video ads for a pilot group of partners. Citi projects these ad products could generate up to $2.7B in revenue in 2015.

Advertisement. Scroll to continue reading.

With a one billion dollar investment in an app which was mocked at the time as an excessive spend akin to behaviors not seen since before the dotcom bubble burst, Facebook could be seeing one of the biggest returns in recent history.


The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Social Media

Meta seeks to calm fears after confirming they've awarded a hacker for discovering a bug that allowed anyone to bypass 2FA on Facebook.

Tech News

AI tools are rising in popularity and in their complexity, creators say they don't consent to their works being in these AI databases.

Social Media

Many Instagram users rely on the Shop tab for doing business, but it's being done away with - what is changing and what can...

Business News

Apple is adding nearly a million square feet to their already giant Austin campus, to potentially seat another 15K employees.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.