Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Friday 28 September 2018
Into the fold? What's next for Instagram as founders leave

By BARBARA ORTUTAY bicker over current events
SAN FRANCISCO (AP) — and to Facebook to see
When Kevin Systrom and what old classmates are up
Mike Krieger sold Instagram to, Instagram is where they
to Facebook in 2012, the go to relax, scroll and feast
photo-sharing startup's their eyes.
fiercely loyal fans worried So, will that change?
about what would happen "I don't think Zuckerberg
to their beloved app under is dumb," Akhtar said. "He
the social media giant's knows that a large part
wings. of Instagram's popular-
None of their worst fears ity is that it's separate from
materialized. But now Facebook."
that its founders have an- As such, he thinks Facebook
nounced they are leaving would be wise to reassure
in a swirl of well wishes and users that what they love
vague explanations, some about Instagram isn't going
of the same worries are to change — that they are
bubbling up again — and not going to be forced to
then some. Will Instagram integrate with Facebook.
disappear? Get cluttered "That'll go a long way," he
with ads and status up- said.
dates? Suck up personal Internally, the challenge is
data for advertising the a bit more complicated.
way its parent does? Lose While Systrom and Krieger
its cool? didn't say why they're leav-
Worst of all: Will it just be- ing, their decision echoes
come another Facebook? the recent departure of
"It's probably a bigger chal- WhatsApp's co-founder
lenge (for Facebook) than and CEO Jan Koum, who
most people realize," said resigned in April. Koum
Omar Akhtar, an analyst at had signaled years earlier
the technology research that he would take a stand
firm Altimeter. "Instagram if Facebook's push to in-
is the only platform that is crease profits risked com-
growing. And a lot of peo- promising core elements of
ple didn't necessarily make the WhatsApp messaging
the connection between service, such as its dedica-
Instagram and Facebook." tion to user privacy. When
Instagram had just 31 mil- Facebook started pushing
lion users when Facebook harder for more revenue
snapped it up for $1 billion; and more integration with
now it has a billion. It had In this Tuesday, June 19, 2018, file photo, Kevin Systrom, CEO and co-founder of Instagram, pre- WhatsApp, Koum pulled
no ads back then; it now pares for an announcement about IGTV in San Francisco. the ripcord.
features both display and Associated Press One sign that additional
video ads, although they're integration may be in Insta-
still restrained compared to close how much money Snapchat's popular "Sto- used parent-company in- gram's future: Zuckerberg
Facebook. But that could Instagram pulls in, though ries" feature, dealing a seri- frastructure to grow "more in May sent longtime Face-
quickly change. Face- Wedbush analyst Michael ous blow to that social net- than twice as quickly as it book executive Adam
book's growth has started Pachter estimates it'll be work upstart and succeed- would have on its own." Mosseri to run Instagram's
to slow, and Wall Street has around $6 billion this year, ing where Facebook's own But Instagram has also product operation. Mosseri
been pushing the compa- or just over 10 percent attempts had repeatedly been a case study in how replaced longtime Insta-
ny to find new ways to in- of Facebook's expected failed. Instagram also pio- to run a subsidiary indepen- grammer Kevin Weil, who
crease revenue. overall revenue of about neered a long-form video dently — especially when was shuffled back to the
Instagram has been a pri- $55.7 billion. feature to challenge You- its parent is mired in user- Facebook mothership.
mary focus of those efforts. Facebook CEO Mark Zuck- Tube, another big Face- privacy problems and con- That likely didn't sit well
Facebook has been el- erberg has long seen Ins- book rival. cerns about election inter- with Instagram's founders,
evating Instagram's profile tagram's promise. At the Recently, Instagram has ference, fake news and Akhtar and other analysts
in its financial discussions. time, it was by far Face- been on a roll. In June, Sys- misinformation. And espe- said. Now that they're gone
In July, it unveiled a new book's largest acquisition trom traveled to New York cially when its parent has as well, Mosseri is the most
metric for analysts, tout- (although it was dwarfed to mark the opening of its long stopped being cool, obvious candidate to head
ing that 2.5 billion people by the $19 billion Zucker- new office there, complete what with everyone and Instagram.
use at least one of its apps berg paid for WhatsApp with a gelato bar and plans their grandma now on it. "Kevin Systrom loyalists are
— Facebook, Instagram, two years later). And it was to hire hundreds of engi- Instagram's simple design probably going to leave,"
WhatsApp or Messenger the first startup allowed to neers. Only a month earlier, — just a collection of photos Akhtar said.
— each month. While not operate mostly indepen- Instagram had moved into and videos of sunsets, far- Which means Facebook
particularly revealing, the dently. sparkly new offices in San away vacations, intimate may soon have a new chal-
measurement underscores That has paid off big time. Francisco. In a July earnings breakfasts and baby close- lenge on its hands: Figuring
the growing importance Not only did Instagram call, Zuckerberg touted Ins- ups — has allowed it to re- out how to keep Instagram
Facebook places on those reach 1 billion users faster tagram's success as a func- main a favorite long after it growing if it loses the cool-
secondary apps. than its parent company, it tion of its integration with became part of Facebook. ness factor that has bol-
Facebook doesn't dis- also succeeded in cloning Facebook, claiming that it If people go to Twitter to stered it for so long.q