See what Mark Zuckerberg and Facebook executives said about Instagram before buying it

Zuckerberg eyed Instagram to curb competition, fearing its growth.

: Mark Zuckerberg expressed concern over Instagram's rapid user growth, describing it as a potential threat to Facebook's market position, especially if acquired by a competitor like Google. Internal discussions among Facebook executives revolved around acquiring Instagram to control its growth or copying its features with new Facebook products. Zuckerberg considered paying $500 million for Instagram, aiming to integrate its features and deter the rise of similar competitors. The company's strategic decisions reflect a broader pattern of acquiring emerging rivals to maintain dominance in the social media industry.

In the early 2010s, Facebook executives, including Mark Zuckerberg, were deeply concerned about the rapid growth of Instagram and the competitive threat it posed. Zuckerberg noted Instagram's swift expansion to 2 million users and 30,000 daily photo uploads within four months. By September 2011, Zuckerberg was worried that Instagram's user base had grown to approximately 5-10 million, potentially doubling every couple of months. This led to strategies to either purchase Instagram or develop similar functionalities to maintain Facebook's lead.

Facebook's strategy entailed either acquiring Instagram or limiting its growth by releasing a competing product. Discussions within the company highlighted various strategies, such as copying Instagram's functionality or stopping its development post-acquisition. This approach was part of a broader pattern where Facebook aimed to eliminate potential competitors by strategic acquisitions, as seen in their plans regarding companies like Instagram, Path, Pinterest, and others.

A dominant theme in the internal emails was the realization that Instagram offered features Facebook did not yet have, notably a superior camera and a dedicated photo-centric sharing network. Zuckerberg pondered paying $500 million for Instagram to incorporate these features and prevent future competitive threats. The potential acquisition was also seen as a way to buy time, allowing Facebook to enhance its own offerings before competitors could replicate Instagram's scale.

Zuckerberg's emails to former Vice President of Product, Samuel W. Lessin, suggested that Facebook should consider buying not only Instagram but other promising startups like Path and Pinterest. Their strategy involved maintaining these products while shifting development focus to Facebook's core products. Acquisitions were viewed as a means to secure talent and integrate new ideas into Facebook, solidifying its market position.

These discussions and strategies reveal much about Facebook's competitive practices under Zuckerberg's leadership, emphasizing the company's aggressive approach to growth and market control. The revelations during the Meta antitrust trial shed light on how strategic acquisitions helped shape Facebook into a social networking powerhouse over the years.

Sources: U.S. Federal Trade Commission, court trial documents, Facebook internal emails