Om Malik at GigaOm:
Facebook and Instagram are two distinct companies with two distinct personalities. Instagram has what Facebook craves – passionate community. People like Facebook. People use Facebook. People love Instagram. It is my single most-used app. I spend an hour a day on Instagram. I have made friends based on photos they share. I know how they feel, and how they see the world. Facebook lacks soul. Instagram is all soul and emotion.
I agree with much of this. But, that said, I don’t think that Instagram were anywhere close to being a true rival to Facebook. I can see why it makes sense for Facebook to snap them up, but I don’t think Zuckerberg went for the buy because he was ‘scared shitless’.