Instagram sold to Facebook for 1 billion!

[yewkwang]

Worth 1 billion! :bigeyes:
Instagram Sale to Facebook Makes Waves on the Web - Yahoo! Singapore Finance
Love the one who comment: "Mark Zuckerberg just bought instagram for $1,000,000,000?.... He could've just downloaded the free app.” :bsmilie::bsmilie:

 

[kei1309]

it's only a matter of time before Facebook buys 9gag

 

[ricohflex]

Every young mega rich person goes through such ego-maniacal spendthrift binges.

Quote from International Business Times 9 April 2012 article.

"Though the Facebook-Instagram deal has been widely praised by observers (and panned by many users of both services), it is poised to be yet another ill-advised acquisition by a tech company looking to throw money into buying a well-established entity rather than innovating something itself.

Facebook is one of the most impressive companies in the world, valued at hundreds of billions of dollars after starting out as just a figment in the imagination of a snotty-nosed college kid (pretty much like any major tech company's backstory.)

But overpaying for companies like Instagram won't help Facebook maintain its dominant market share, as a billion bucks for a fun (and admittedly useful) photo app represents a huge overestimation of how much the company is really worth."

 

[lotus80]

0 revenue and a dozen employees != 1 billion

I smell rat.

 

[hanzohattori]

0 revenue and a dozen employees != 1 billion

I smell rat.

Doesn't matter... had $1B

 

[yrh0413]

just curious... how could Instagram earn anything when the app itself is totally free? :dunno: the employees all work FOC?

 

[hanzohattori]

just curious... how could Instagram earn anything when the app itself is totally free? :dunno: the employees all work FOC?

Venture capital.. or they could work for shares.. and wait for something like this, then cash out the shares.

 

[yrh0413]

I create a new company
I hire 5 software engineers to develop an app
I sign-up as Apple developer (need to pay $$$)
I pay salary to my engineers (need to pay $$$)

... and I give away my app for free. No in-app purchases, no annoying ads.

How could one work for shares when the company has only expenses but zero revenue? The share (if any) is worth nothing. :dunno:

 

[kei1309]

the worth of a company sometimes isn't how much they can generate... but rather, how many and who they can reach out to

 

[hanzohattori]

How could one work for shares when the company has only expenses but zero revenue? The share (if any) is worth nothing. :dunno:

You can ask the guy who painted Facebook HQ walls.

 

[ricohflex]

The purchase may have a reason. But the price paid for it is completely senseless. It is merely a photo uploading and sharing site. There was no need at all to pay so much. Unless this is somebody's way of milking the company that he is taking public.

 

[sinned79]

maybe facebook wants to do away with their albums and incorporate instagram instead?

 

[kei1309]

The purchase may have a reason. But the price paid for it is completely senseless. It is merely a photo uploading and sharing site. There was no need at all to pay so much. Unless this is MZ's way of milking the company that he is making public.

totally agree. the amount is ridiculous

 

[UncleFai]

totally agree. the amount is ridiculous

The guys at Draw Something must be kicking themselves... Only US$200 million...

 

[lotus80]

totally agree. the amount is ridiculous

Like that Japanese camera company made a fake acquisition in virgin islands and later got caught, they were cooking books.

Large accusations are to pocket money first and then do business, if at all.

... in my humble opinion

 

[kei1309]

Like that Japanese camera company made a fake acquisition in virgin islands and later got caught, they were cooking books.

Large accusations are to pocket money first and then do business, if at all.

... in my humble opinion

yup. to do business. but no matter how rich the company is, USD 1 Billion is too much to pay.

you're inflating the cost of every single application out there. what are you trying to tell developers for apps? that create and we'll pay you lots of money?

also you've paid USD 1 Billion. the company has a lot of catching up to do to earn back the excess paid.

 

[ricohflex]

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