Why Instagram's Co-Founders Are Leaving Facebook

Instagram’s two founders are leaving the company they sold six years ago to Facebook Inc. (FB) for $1 billion.

People familiar with the situation told Bloomberg and TechCrunch that Kevin Systrom and Mike Krieger handed in their resignations after growing tired with Facebook CEO Mark Zuckerberg’s increased involvement in the photo-sharing app’s day-to-day operations.

When the pair sold Instagram to the social network in 2012, Facebook gave them free rein to run it independently. However, in recent months Zuckerberg has taken a more hands-on approach as the photo-sharing app soared in popularity while Facebook, hit by various data controversies, struggled to attract new users. (See also: Users Spend Less Time on Facebook: Research.)

TechCrunch reported that Systrom had been involved in heated clashes with Zuckerberg over the CEO's plans to move Instagram’s content production to Facebook. Then, in May, Kevin Weil, the photo-sharing app's vice president of product, was moved to Facebook’s new blockchain team and was replaced by Adam Mosseri, a former VP of Facebook’s news feed and a close ally of Zuckerberg. This internal move was described by a source as one of many designed to pressure Instagram to do more for Facebook.

Systrom and Krieger, who were both known to favor product development over Facebook’s advertising agenda, did not mention any of this when announcing their resignations. “We’re planning on taking some time off to explore our curiosity and creativity again,” the co-founders of Instagram wrote in a blog post. “Building new things requires that we step back, understand what inspires us and match that with what the world needs; that’s what we plan to do.”

The Exodus Continues

The departures of Systrom and Krieger mean that the founders of Facebook’s three biggest acquisitions have now all left the social network.

Just under six months ago, WhatsApp founders Jan Koum and Brian Acton quit Facebook after clashing with Zuckerberg over privacy and data protection following the Cambridge Analytica scandal. Oculus VR co-founder Palmer Lucky left the social network 18 months ago. (See also: Facebook Stock Seen Falling to 2018 Low.)

Facebook's acquisition of Instagram, which hit 1 billion monthly users in June, has been a remarkable success. However, investors will be concerned that the departure of the app's founders will hurt its appeal. "This is really bad for Facebook. Instagram was a bright future for the company. Now, the people who know how to maintain the culture and purpose of the product are leaving," said Bloomberg technology reporter Sarah Frier in a tweet after the news broke.

Facebook stock was almost 2% lower in pre-market trading.