Systrom, CEO of Instagram and Krieger was its CTO remained an impressive six years after the Facebook acquisition. Recently, Facebook had more closely aligned the two leadership teams, installing Facebook executives, as product chiefs for Instagram. Chris Cox, Facebook’s CPO expanded his responsibilities to include Instagram, and Adam Mosseri, long time Facebook product exec, as head of product for Instagram.
In April of this year, co-founders of a 2014 $19 billion acquisition WhatsApp, also left Facebook, reportedly after tensions over privacy and security; the WhatsApp co-founders left over $1.4b on the table. That separation was a lot more acrimonious, as WhatsApp cofounder Brian Acton, urged followers to delete Facebook.
It is not surprising that founders of such caliber would have strong opinions about their company, acquired or not; nor is it surprising that they would clash with Mark Zuckerberg, also a strong-willed founder and CEO.
What is surprising is that Facebook was able to hold on to them for that long: Instagram founders for six years, and WhatsApp founders for four.
The likely cause of Facebook’s CEO getting more involved in Instagram: according to Re-code, (chart), Instagram’s share of Facebook’s new ad revenue nears 70% from under 20% in the first quarter of 2017. Also, Instagram’s total share of ad revenue has gone from 10% to just under 30% in the same time period. It is no wonder Facebook has inserted itself more into its Instagram division.
Instagram has promoted Adam Mosseri, VP of product, to head of Instagram. Mosseri will oversee business, hire a new executive team including a head of engineering, product and operations.
Date: September 29, 2018
