Wednesday, 17 October 2018
Latest news
Main » Instagram founders clash with Zuckerberg, leave Facebook

Instagram founders clash with Zuckerberg, leave Facebook

26 September 2018

Instagram CEO Kevin Systrom, and his co-founder, Mike Krieger, sold the company to Facebook in 2012 for $1 billion.

Instagram, created as a photo-sharing app and purchased by Facebook for $1 billion, has been one of the fastest-growing segments of the California tech giant's "family" of applications and services, and is especially popular with the younger consumers.

Instagram co-founders Kevin Systrom and Mike Krieger resigned Monday and didn't offer a reason to the parent company.

Facebook chief executive Mark Zuckerberg said in a statement that Instagram reflected the Instagram founders' "combined creative talents".

The greater issue, he says, is whether Systrom and Krieger are taking proprietary and/or patented intellectual property with them. Building new things, he added, requires stepping back, understanding what inspires them and matching that with what the world needs and that's exactly what they plan to do.

Kevin Systrom and Mike Krieger, who have been at the company since Instagram's acquisition by Facebook in 2012, were able to keep the brand and product independent from Facebook.

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

Facebook is facing multiple inquiries from US and British regulators about the Cambridge Analytica user data scandal, and its boss Mark Zuckerberg was grilled by the European Parliament and the US Congress earlier this year. Menlo Park, California-based Facebook is still a drag on technology stocks, which overall have propelled the USA stock market to record highs.

Deputy Attorney General Rod Rosenstein expects to be fired
ABC News' Mike Levine reported Rosenstein is "is now on his way to the White House , expecting to be fired once he gets there". Bush administration and continued in through Barack Obama's administration.

The defections are part of an all-too familiar script at Facebook, of late.

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 previous year.

These days, Instagram is Facebook's most prized possession, though the ouroboros of Instagram and Facebook is hard to parse.

The exit of Systrom and Krieger, who have led the rapid growth of Instagram under Facebook's ownership, is a "notable negative" for Facebook, CFRA Research analyst Scott Kessler wrote in a research note Tuesday.

The two had clashed with Zuckerberg in recent months, the person said.

Even before we got to this point, Instagram was already becoming a vastly more crucial piece of the Facebook portfolio of companies and services.

The departures raise questions about Instagram's future at a time when Facebook faces its most sustained set of crises in its 14-year history.

WhatsApp founder Jan Koum left the company in 2014, the same year Facebook bought the messaging app.

Instagram founders clash with Zuckerberg, leave Facebook