Instagram was barely two years old when FB acquired them for $1B along with a promise to allow Ig to continue to operate independently. It'd be very hard for most founders/investors to pass up such a deal, particularly with an app that was even more of a one-trick-pony at the time.

SNAP was offered bucketloads of cash and refused. WhatsApp agreed to be acquired but now both founders are gone. The impression I get about FB from these stories is that its pretty much a Faustian bargain to join them...

They were bought by Facebook a long time ago. Who can say how they would be doing if that hadn’t happened?

Honestly, the features that Facebook added isn't really innovative. I'm sure they must have a really nice, highly optimized backend and such but if SNAP can stay independent and IPO, I'm pretty sure Instagram could have managed to as well.

If you think about it, SNAP would be doing a lot better if Facebook hadn't bolted on the stories feature on Instagram. The Facebook version of stories really really sucks.

All in hindsight of course. But it seems like a shame, a real missed opportunity to create value and stay independent at the same time.

Facebook’s value add isn’t features, it’s money (in the form of ad sales).