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The New York Times reports that Instagram's co-founders, Kevin Systrom and Mike Krieger, are leaving Facebook. Facebook bought Instagram for a cool $1 Billion way back in 2012, and the platforms have remained more or less separate ever since then. The departure seemed relatively amicable when the New York Times broke the story, but now other sources are saying that things may not be so rosy. Bloomberg's anonymous sources, for example, claim that the co-founders were "frustrated with an uptick in day-to-day involvement by Zuckerberg, who has become more reliant on Instagram in planning for Facebook’s future."
Facebook shares fell 2.2 percent, to $161.70, at 9:44 a.m. in New York. Meanwhile, Snap Inc. rose about 2 percent, amid speculation that the company can take advantage of Facebook’s woes. For years, Systrom and Krieger were able to amicably resist certain Facebook product initiatives that they felt went against their vision, while leaning on Facebook for resources, infrastructure and engineering talent. A new leader may not be able to keep the same balance, or may be more willing to make changes that help the overall company at the expense of some of Instagram’s unique qualities.
Facebook shares fell 2.2 percent, to $161.70, at 9:44 a.m. in New York. Meanwhile, Snap Inc. rose about 2 percent, amid speculation that the company can take advantage of Facebook’s woes. For years, Systrom and Krieger were able to amicably resist certain Facebook product initiatives that they felt went against their vision, while leaning on Facebook for resources, infrastructure and engineering talent. A new leader may not be able to keep the same balance, or may be more willing to make changes that help the overall company at the expense of some of Instagram’s unique qualities.