Facebook buys Instagram for emotional rather than financial reasons, Projector’s Leonid Volkov says

11 April 2012 (09:57)

‘Facebook’s buying the Instagram app isn’t based on any market-oriented decisions. I believe Mark Zuckerberg’s reasoning was emotional rather than financial, like a billionaire’s decision to purchase a football club. The overall idea was this: we like this product, we’d like to make an impact on it. This is why one cannot estimate this acquisition in market terms,’ the Managing Partner of Projector Leonid Volkov told UrBC.

Now the social network Facebook is buying Instagram, the popular application for creating and editing digital images, for about $1bn.

‘As for the Urals, we are not going to have anything near a business like Instagram in terms of capitalization now or any time soon. We’ve got neither the technologies nor the right mentality for promoting successful global-scale virus social network services. To do this, you have to be there, in the Silicon Valley,’ Volkov says.

‘True, Yandex decided to finance Citrea, but this is something different. Unlike Instagram, this app places the burden of the end value on the user. This is a new tool for text editing that Yandex will be placing within some apps of its own. We hope that later on, with Yandex’s example before them, other grand market players will try to follow suit. This technology can definitely conquer the world, it has some serious scientific work behind it. But this app will never be the one that is installed onto every other girl’s cell phone. That is, it might actually be installed, but it will have a different name and will be a part of a system of some sort,’ Volkov explained.

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