Instagram Co-Founders Step Down From Company
After more than seven years with the lucrative company, co-founders of the app Instagram, Kevin Systrom and Mike Krieger, are leaving the company with no formal indication as to why. The New York Times reports that Systrom and Krieger have been hands-on managers of the platform even after Facebook purchased the company six years ago. This will be the first time in the app’s history that someone other than Systrom or Krieger will be responsible for the growth and direction of the platform. As of right now, a replacement for the two positions has not been filled.
There have been multiple reports of tensions between Systrom, Krieger and Mark Zuckerberg over certain product changes having to do with Instagram, which may have resulted in the departure of the two co-founders. Disagreements in the level of independence Instagram has to Facebook has also been speculated for many years.
Although Facebook makes more money annually, Instagram has been touting the social media giant that helped increase advertising revenue while Facebook was struggling with privacy scandals. According to eMarketer, Instagram's revenue is expected to increase to $5.4 billion this year alone.
The creation of uncertainty that Systrom and Krieger have caused in the Facebook franchise is already beginning to cause adverse effects. Stock in Facebook has dropped two percent since Systrom and Krieger announced their departure from Instagram and investors are starting to lose confidence in the profitability of the company. Although this may be a coincidence, the likelihood of stocks dropping after this announcement is fitting.