Instagram departures hit Facebook shares

Instagram departures hit Facebook shares

Facebook representatives did not immediately respond to a request for comment on the reasons for the Instagram co-founders' departure.

Instagram co-founders Mike Krieger and Kevin Systrom are leaving Facebook "to explore [their] curiosity and creativity again", Systrom announced in a blog post.

In a statement on Tuesday, Systrom, CEO of the company, said he and Krieger were grateful for "the last eight years at Instagram and six years with the Facebook team".

On Facebook's second-quarter earnings call, Chief Executive Mark Zuckerberg said, "We believe Instagram has been able to use Facebook's infrastructure to grow more than twice as quickly as it would have on its own". "Building new things requires that we step back, understand what inspires us and match that with what the world needs". The two executives had different opinions on what content is shared between the two different platforms although more recently the tension became more heated and resulted in Zuckerberg pulling all of the links to Instagram from Facebook.

They notified the photo-sharing app's leadership team and Facebook on Monday about their decision to leave, according to Instagram. Unlike most acquisitions, where the acquired company brings new skills, Facebook was already the world leader in social media before the acquisition.

"I've learned a lot working with them for the past six years and have really enjoyed it", he said.

Koum's departure in May followed the exit of his WhatsApp co-founder Brian Acton.

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Instagram has been a key part of the Facebook empire as younger users shun the original social network and move into different applications.

There are reports that Mr Systrom had sought to maintain Instagram's independence and that this trickled down to make staff on Facebook and Instagram less inclined to be collaborative. "I'm looking forward to seeing what they build next".

Systrom, now 34, created the app in 2010 with Krieger, now the outgoing "chief technical officer", when they were students at Stanford University in the heart of Silicon Valley.

Instagram this summer topped 1 billion monthly active users and has 25 million businesses that maintain accounts on the service. "In the near term, we expect Facebook shares to come under meaningful pressure from the departures".

All of this proves that Instagram is hugely important to Facebook's future growth, not least because the brand is still comparatively untainted.

"Those are signs that [Zuckerberg] definitely wants more Facebook influence on Instagram", Williamson said.

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