NEW YORK ( TheStreet) -- Facebook (FB) has launched a photo sharing app for Apple's (AAPL) iPhone, Facebook Camera for iPhone. Why, then, did Facebook spend $1 billion on Instagram if it knew this was in the works?
Looking at the product page, it's not quite clear why Facebook paid a significant amount of money and stock for the popular Instagram, when it was going to announce a strikingly similar product of its own.
Facebook has touted the fact that it has over 300 million photos uploaded to its site every day, so clearly this is a core feature for the social networking giant. Perhaps CEO Mark Zuckerberg bought Instagram because of fears that users would navigate away from the site, hurting a core part of Facebook's business.
A Facebook spokesman declined to comment on whether the new app would affect their plans for Instagram in the future, saying the deal had not yet closed.The new app makes photo sharing easier, Facebook said, allowing users to share multiple photos at once, caption the picture, tag it and put your location on it. It remains to be seen why Facebook bought Instagram if this project was in the works. It's not like the new iPhone app came together overnight. More likely, this has been a project that Facebook has been working on for months, which is only just seeing the light of day. Instagram, of course, has become incredibly popular. Over 50 million users use the app to snap photos, apply filters to their shots, and share the pictures with their friends. If there's one thing Wall Street and investors hate, it's uncertainty, particularly in the aftermath of a massive $1 billion acquisition. Expect Zuckerberg and his team to answer questions on the newly-public company's camera strategy or, potentially, face some very unhappy shareholders. Interested in more on Facebook? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV