WhatsApp creator Jan Koum left the company in April following alleged clashes with Facebook management over the handling of personal data, while Oculus chief Palmer Luckey resigned after reportedly funding Donald Trump's presidential campaign, the newspaper says. Facebook had acquired Instagram for $715 billion back in 2012. Facebook's stock has taken a dramatic plunge in the wake of the scandal with Cambridge Analytica, which used an online quiz to harvest and collate Facebook users' information online. But Facebook is also keen to increase engagement with the core social network, which has seen growth plateau and certain subsets of users become increasingly disenfranchised.
This year Instagram topped more than 1 billion monthly active users, after adding hundreds of millions of users in roughly the past 18 months. Instagram has since been valued at 100 times that $1 billion acquisition price by Bloomberg Intelligence, a sizable return on investment on paper. Menlo Park, California-based Facebook is still a drag on technology stocks, which overall have propelled the US stock market to record highs. Similar reports followed the resignations of WhatsApp's founders.
Instagram, meanwhile, has remained a bright spot for the company.