Double-clicking has now made Instagram’s CEO, Kevin Systrom, a billionaire. In only a short four years since selling the app to Facebook for US $1 billion, Systrom is a force to be reckoned with. Analysts estimate his net worth to be around US $1.1 billion.
Back in 2012, Mark Zuckerberg agreed to buy Instagram for US $300 million in cash and 23 million shares of stock, a combination that came to about US $1 billion, according to Facebook’s pre-IPO stock price. Instagram started as a basic photo-sharing app in October 2010 and had only 13 employees in the middle of mid-2012. Systrom owned 40 percent of Instagram going into the deal and had an estimated net worth of US $400 million.
Despite the challenges that have presented itself to both Facebook and Instagram over the last four years, both companies have pushed through. This can be attributed to society’s ever-increasing need to share their lives with their friends and families. Now, more than ever, people are becoming visual. There are only a few seconds to capture one’s audience. People scroll through their social account pages almost blissfully as they look for the most visually-appealing story.
This is the power of Instagram. It is a beautiful blend of technological advances that reflect the generation of today. Perhaps similar to the chicken-and-egg conundrum, it is difficult to see whether society pushed for an app like this or whether Instagram changed the way we see the world. In any case, it is likely that the company will continue its success, with Systrom maintaining his net worth for years to come.
Steve Sorensen is a researcher who likes to study the financial and business growth of the biggest companies around the world, including those of high networth individuals. To learn more about his work, follow this Twitter account.