MENLO PARK, California - The social media company Instagram is posting a whopping new valuation, estimated at 35 billion dollars. It was only two years ago that Facebook bought Instagram for $1 billion. It was a deal that had plenty of people speculating it was a mistake.
At the time, Instagram had just 30 million users and no revenue to speak of. But now Facebook is looking prophetic. Instagram has appreciated 35 times since the sale in 2012. Instagram now has ten times the users it did less than three years ago, and it accounts for about 16% of Facebook's $221 billion market value.
It is a good thing, too, because apparently teens are fleeing from Mark Zuckerburg's social media giant. The number of active users aged 13 to 17 fell from 94% in 2013 to 88% this year. Also, kids don't seem to find Facebook "fun" anymore. Only 18% of teens surveyed using that word to describe the site.