Published: Wed, September 26, 2018
Money | By Ethel Goodwin

Instagram co-founders set to leave firm after friction with Facebook officials

Instagram co-founders set to leave firm after friction with Facebook officials

The departure of Instagram co-founders, Kevin Systrom and Mike Krieger adds to the woes of the parent firm, Facebook, as it tries to fix its image hurt by privacy scandals and curb manipulation and misinformation.

Instagram's growth over the past few years had a lot to do with its strategic positioning to Facebook; leveraging the latter's engineering resources whilst maintaining a sense of independence from Zuckerberg's social network.

Systrom said in a statement on Monday that he and Krieger are "ready for our next chapter" that includes "building new things".

"We're planning on leaving Instagram to explore our curiosity and creativity again".

Systrom served as the chief executive of Instagram and Kriger server as the company's Chief Technical Officer, the two co-founders notified Instagram's leadership team and Facebook on Monday of this week that they were resigning from the company.

This claim was backed by another company source, who told Tech Crunch that Facebook put pressure on Systrom to help expand the social network's dwindling teenage audience - Instagram's primary demography. The report states that they've already resigned and they plan to leave the company in the upcoming weeks. "ORCRP0017763-topic.html" class="local_link" >WhatsApp, Facebook's largest acquisition, and its influential head of policy and communications. It also allows users to post Instagram photos to Facebook, and prompts users to add their Facebook friends on Instagram. "I wish them all the best and I'm looking forward to seeing what they build next", Zuckerberg said. The company has started to disclose that the increasing number of ads on Instagram is a significant contributor to Facebook's revenue growth. That's good news for investors, but it also poses a risk to the very reason for the success of Systrom and Krieger's baby.

Analyst Anmuth estimates Instagram will haul in $7.5 billion in revenue this year, more than double from a year ago-and roughly 14% of Facebook's ad revenue in 2018.

Instagram cofounders Mike Krieger and Kevin Systrom.

Since then, the service has grown to support over a billion users speaking 36 languages, and along the way got acquired by Facebook for a $1 billion in cash and stock.

The two were inspired to create the Instagram app - originally launched just for iPhones in 2010 - by old Polaroid pictures. Koum had signaled years earlier that he would take a stand if Facebook's push to increase profits risked compromising core elements of the WhatsApp messaging service, such as its dedication to user privacy.

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