Instagram co-founder Kevin Systrom testified on Tuesday at Meta’s antitrust trial in Washington, revealing that the popular photo-sharing app could have succeeded without being acquired by Meta Platforms. Systrom’s testimony sheds light on the early days of Instagram and the company’s rapid growth before being bought by Meta, formerly known as Facebook.
Systrom, who co-founded Instagram with Mike Krieger in 2010, shared how the app quickly gained popularity and attracted millions of users within a short period of time. He stated that Instagram was growing at a rapid pace and had the potential to become a successful standalone company.
The co-founder’s testimony comes as part of the ongoing antitrust trial against Meta, which is being accused of stifling competition by acquiring potential rivals. The US Federal Trade Commission (FTC) and a coalition of state attorneys general have filed lawsuits against Meta, alleging that the company has a monopoly in the social media market.
During his testimony, Systrom recounted how Instagram was initially launched as a simple photo-sharing app with limited features. However, the app’s user base grew exponentially, and it soon became a popular platform for sharing photos and videos. Systrom also shared that Instagram’s growth was organic, with users spreading the word about the app through word-of-mouth and social media.
Systrom’s testimony also revealed that Instagram was not actively seeking to be acquired by Meta or any other company. He stated that the team was focused on building a successful product and was not actively looking for buyers. However, in 2012, Meta CEO Mark Zuckerberg approached Systrom with an offer to buy Instagram for $1 billion in cash and stock.
At the time, Instagram had only 13 employees and had not yet generated any revenue. Despite this, Systrom and Krieger decided to accept the offer, believing that Meta’s resources and expertise could help Instagram reach its full potential. The acquisition was completed in 2012, and Instagram continued to operate as a standalone app under Meta’s ownership.
Systrom’s testimony challenges the argument put forth by the FTC and state attorneys general that Meta’s acquisition of Instagram was a strategic move to eliminate competition. He stated that Instagram’s success was not dependent on being acquired by Meta and that the app could have continued to grow and thrive as an independent company.
The co-founder’s testimony also highlights the positive impact that Meta’s acquisition had on Instagram. Under Meta’s ownership, Instagram was able to expand its user base, introduce new features, and generate significant revenue. Today, Instagram has over 1 billion monthly active users and is one of the most popular social media platforms in the world.
In conclusion, Kevin Systrom’s testimony at Meta’s antitrust trial reveals that Instagram’s success was not solely dependent on being acquired by Meta. The app’s rapid growth and popularity before the acquisition demonstrate its potential to become a successful standalone company. Systrom’s testimony also highlights the positive impact that Meta’s acquisition had on Instagram, allowing the app to reach new heights and become a household name in the social media world.
