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Facebook & Instagram
While not anywhere near on the "WTF" scale as Zynga's or HP's acquisition blunders in the last year, the $1B acquisition of the photo sharing service Instagram by Facebook is still somewhat questionable and it remains to be seen if the merger ends up being a successful one.
On the surface it seems that Facebook entering the photo sharing space was a good idea, but whether they needed to spend a billion dollars to do something they probably could have coded in-house for far, far less money and gotten probably instantaneous market share on is another matter entirely.
Ten months after the acquisition, Instagram is still an independent app download from the main Facebook app on both the iOS and Android platform, and the sharing of the photos on user timelines is anything but seamless, so the integration of the company's assets have been questionable.
But code integration isn't the worst of this merger's problems. Facebook has recently cut off the use of Instagram's "cards" API to Twitter, which has enraged many of Instagram's core user base that actively uses both services. Kerfuffles (and about-faces) over Instagram's terms of service and photo usage rights by Facebook haven't helped the company's image either.