Instagram Cofounders Systrom, Krieger To Exit 09/26/2018

Instagram Cofounders Systrom, Krieger To Exit 09/26/2018

Instagram Cofounders Systrom, Krieger To Exit 09/26/2018

Conceivably, Systrom and Krieger could create a better version of Instagram.

Instagram has become an attractive platform for advertisers, thanks to its visual nature and the easy-to-use Facebook ad-buying software that lets them place and measure their ads on the photo-sharing app. Instagram has also been left relatively unscathed as Facebook deals with issues ranging from the unauthorized disclosure of users' data to the spread of misinformation on its platform.

"Our sense is the duo may have wanted to run Instagram more independently than their parent company wanted", said Scott Kessler, an analyst at the research firm CFRA.

Instagram has been a key part of the Facebook empire as younger users shun the original social network and move into different applications.

Instagram accounts for Facebook's fastest growing slice of revenue.

According to a report from Bloomberg, the departures come "after growing tensions with [Facebook CEO] Mark Zuckerberg over the direction of the product".

According to the New York Times, company chief Kevin Systrom and technical head Mike Krieger have already resigned from their positions.


Systrom said in a statement on Monday that he and Krieger are "ready for our next chapter" that includes "building new things". If people go to Twitter to bicker over current events and to Facebook to see what old classmates are up to, Instagram is where they go to relax, scroll and feast their eyes.

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.

Despite remaining Instagram's figurehead at product launches and other public appearances, Mr Systrom's influence declined over time, a source told the BBC, as more Facebook executives were transferred to the photo service. He's now head of product, and has a CV that some of Instagram's loyal users might find ominous - he was formerly in charge of Facebook's Newsfeed.

Concerns over the fallout of the Cambridge Analytica privacy scandal and signals that a rise in costs would hurt Facebook's margins for years, fueled the biggest one-day wipeout in us stock market history in July.

That fuelled investor concern over the sudden loss of the pair, which follows the departures of WhatsApp co-founders Jan Koum and Brian Acton and a reshuffling of Facebook's executive ranks earlier this year.

This isn't the only recent high-profile resignation from Facebook's properties.

On the earnings call, Chief Financial Officer Dave Wehner said while users were flocking to consume content across the Stories format, those ads weren't generating as much revenue as those in Facebook and Instagram's feeds.

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