Facebook is responsible for Instagram now. It better not mess it up

Muriel Colon
September 26, 2018

"We remain excited for the future of Instagram and Facebook in the coming years as we transition from leaders to two users in a billion", he continued.

On Monday night, Kevin Systrom, CEO of the Facebook-owned photo-sharing app, announced that he and fellow cofounder Mike Krieger were departing the social media firm. In June, Systrom traveled to NY to mark the opening of its new office there, complete with a gelato bar and plans to hire hundreds of engineers.

"We're planning on taking some time off to explore our curiosity and creativity again", Systrom said.

He later tweeted, "The @instagram journey is one I won't forget".

"The irony is that Kevin built the more successful product", one insider commented.

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

If you're a fan of Instagram, and many hundreds of millions of you are, there are plenty of reasons to be anxious about a pair of resignations that came out of nowhere Monday night, sent tech Twitter into a tizzy and signaled the arrival of a significant new chapter for the biggest social networking company on the planet.

"The share of Instagram ads placements is clearly on the rise, reaching 43 percent in March 2018".

The Forbes billionaires list estimates Kevin Systrom's net worth at $1.4bn. Which brings us to last night's news.

WhatsApp creator Jan Koum left the company in April following alleged clashes with Facebook management over the handling of personal data, while Oculus chief Palmer Luckey resigned after reportedly funding Donald Trump's presidential campaign, the newspaper says.

Instagram has been a key part of the Facebook empire as younger users shun the original social network and move into different applications. Facebook recently disclosed that it had deleted hundreds of pages across Instagram and its main social network linked to global misinformation campaigns meant to disrupt elections.

And eMarketer has estimated that Facebook would lose some two million US users under age 24 this year.

But the blow to Facebook is far more than optics.

Meanwhile, Facebook user growth is slowing: The platform added 22 million daily active users globally during the most recent quarter, compared to 41 million during the same period a year ago.

Regardless of who Facebook installs to take over Instagram, it's a sure bet that the platform's fundamental business strategy won't change - which is to continue to develop Instagram as the sector's most engaging platform for brand marketers, said Yuval Ben-Itzhak, CEO of Socialbakers.

Other reports by

Discuss This Article