Posted October 15, 2018 05:07:24 Facebook is a perfect fit for the next generation of businesses, which it’s increasingly being used to promote, according to Brian Foy, vice president of digital and media strategy at the company.
In a speech on Tuesday, Foy highlighted Facebook’s growing business of making video and audio advertising accessible to consumers and businesses.
“In this digital era, we can do a lot of things more quickly than ever before.
We can make videos on demand and offer more personalized advertising to businesses,” he said.
Foy noted that Facebook was also expanding into the video-streaming space, where it will offer its own video-sharing service and its own streaming service.
That’s important for companies who want to compete with the likes of Netflix, Hulu, Amazon and Apple.
Facebook has long been a platform for online video ads, but the social network has become increasingly popular in the last year as people use the platform more to share content.
The acquisition of Instagram, which Foy called a “great fit” for Facebook’s strategy, also gives Facebook a way to reach more of the world’s population and build a wider audience.
The news of the acquisition was first reported by the Wall Street Journal on Tuesday.
Facebook said that it will pay Instagram a “per-share” of about $3.10 per share for the 30 days after the deal closes.
The deal is subject to customary closing conditions and closing prices.
Fondue Capital Management, the investment firm that led the acquisition, also contributed to the deal.
Facebook CEO Mark Zuckerberg also is a big Instagram user.
Earlier this month, the social media company announced that Zuckerberg had signed a $250 million contract to run Instagram, and that he plans to use the company to expand its business.
Foys comments on Instagram’s future are similar to what he’s heard from other investors, who say the social-media platform is ripe for growth.
Facebook’s stock has risen about 25% since it was valued at $19.3 billion on February 18, 2017.
The company is also getting more attention from tech companies.
Last week, Twitter Inc., which owns Twitter, announced that it was paying $500 million to buy the photo-sharing site Instagram for about $1 billion.