Purchase of Instagram disrupts traditional business models

The US$1-B purchase of the mobile phone sharing application Instagram disrupted traditional business models, Hans Roxas-Chua, co-founder of the Internet & Mobile Marketing Association of the Philippines (IMMAP) said during Rappler’s TalkThursday on April 12. Instagram, a free app with few ads on its site but with a minimum of 30 million users, was purchased by Facebook, transforming Instagram into overnight millionaires. “Digital has the ability to disrupt,” Roxas-Chua said. For 1% of its estimated IPO value, Facebook was able to take out one of its biggest competitors, making the deal beneficial all around, as the venture capitalists who invested $50 million in Instagram the week before the buyout, doubled their money in days. Read more details in Rappler.