Economy

Instagram co-founders quit in another blow to Facebook

Instagram co-founders quit in another blow to Facebook

Kevin Systrom, the chief executive officer, and Mike Krieger, chief technical officer, have announced they will step down from Instagram in the next few weeks - six years after it was bought by Facebook.

Systrom and Krieger did not specify a reason for their departure.

"We're planning on leaving Instagram to explore our curiosity and creativity again", Systrom wrote. Then, in May, Kevin Weil, the photo-sharing app's vice president of product, was moved to Facebook's new blockchain team and was replaced by Adam Mosseri, a former VP of Facebook's news feed and a close ally of Zuckerberg.

The news of their departure comes from The New York Times, and is corroborated by a statement from Systrom. With the founders gone, they expect Instagram will be more tightly integrated into Facebook, and may become more of a division within Facebook, rather than its own company.

When the pair sold Instagram to the social network in 2012, Facebook gave them free rein to run it independently. We look forward to watching what these innovative and extraordinary companies do next.

In a statement late Monday, Sept. 24, 2018, Systrom said in a statement that he and KriIn this Tuesday, June 19, 2018, file photo, Kevin Systrom, CEO and co-founder of Instagram, prepares for an announcement about IGTV in San Francisco. Concerns over Facebook's business sparked the biggest one-day wipeout in United States stock market history in July.

WhatsApp creator Jan Koum left the company in April following alleged clashes with Facebook management over the handling of personal data, while Oculus chief Palmer Luckey resigned after reportedly funding Donald Trump's presidential campaign, the newspaper says.

More news: New sexual-misconduct accusation rocks Kavanaugh nomination

The men who co-founded the billion-dollar social media platform Instagram are resigning without an explanation. Instagram is adding 300 million active users each month, whereas Facebook is adding 228 million to its main service.

As the number of users increased, so has the value of the company.

Instagram, which was purchased by Facebook in 2012 for $US1 billion in cash and stock, now has more than one billion users. Facebook was not immediately available to comment outside regular business hours.

Shares of Snap, an Instagram rival, rose more than 2 percent on the news.

Facebook doesn't break out Instagram's revenue, but it has frequently called out the app in earnings calls.

Facebook stock was nearly 2% lower in pre-market trading. Instagram was a bright future for the company.

Since the WhatsApp shuffle, Instagram employees became nervous about something similar happening to their group, according to people familiar with the matter.


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