After Facebook's second quarter earnings report was released, Mark Zuckerberg, Facebook co-founder and CEO, called out Instagram and its new feature called video on Instagram. He also gave a remark about monetizing the online photo and video sharing site.
"Kevin has always been clear that we're building Instagram to be a business, and we expect that over time, we're going to generate a lot of profit from it, probably through advertising. Now, that all said, right now, it's just growing so quickly. I mean, the number that we've just said was 130 million monthly actives, (and the) video product is growing really quickly," Zuckerberg stated.
Kevin Systrom is the co-founder and CEO of Instagram. Zuckerberg said that they were looking at many directions for Instagram to expand. Facebook and Instagram CEOs would focus on increasing Instagram's footprint and then they would already put advertisements on the site. Zuckerberg added that it would be a huge opportunity to grow.
Last year, Facebook succeeded in acquiring the photo sharing service for U$715 million. Facebook paid US$521 million in cash and stock to Instagram. Furthermore, the ledger of Facebook showed that Instagram consisted of US$86 million in net assets and US$435 million in goodwill or other intangible properties.
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