You may have done a double take when you first heard that Mark Zuckerberg and Facebook had agreed to purchase revenue-less photo sharing app Instagram for a cool $1 billion. You may have wondered how in the hell a startup like Instagram was worth that much money.
Well, I don’t think that you can justify an acquisition with a single number, but this one is pretty impressive nonetheless.
That’s the total number of Instagram’s Daily Active Users, according to App Data.
In April, the month that Facebook first announced the acquisition, DAUs were just shy of 1 million (860,000). If you’re quick with the math, you already know that’s over 1000% growth in less than six months.
Last week, Facebook officially welcomed Instagram to the team as the deal finally closed. That was following an FTC investigation that concluded two weeks ago and a California state inquiry that decided to release 23 million shares of Facebook stock as part of the deal.
Of course, jumping under the Facebook umbrella probably didn’t trigger the massive growth. The app did finally launch on Android just days before the acquisition was announced. But the app is on a rocket-like trajectory. Facebook may be struggling on the stock front, but they did manage to close the deal on an astoundingly popular app.
[via Business Insider]