What Really Happened When Facebook Bought Instagram • Hacker News Board

Re: What Really Happened When Facebook Bought Instagram

#101

Post by jeremymcanally » Mon, May 06, 2013, 2:17 PM UTC

logicallee wrote: post #67

SandB0x wrote: post #31

You may as well be reading about a rock band here. This story does not and will not apply to you. This is the one in a thousand/million fairy-tale of the frivolous app dreamed up in coffee shops, fuelled by rapid investment and sold for vast sums to a tech giant without so much as a whiff of a business model.

I see. Let's say I see a big incumbent who's UNIQUE selling point is 'we have everyone's private photos. people have to come to us if they want to see their friend's photos.' I start threatening them. They pay and buy us. I get rich. The incumbent gets to keep everyone's photos. At what point in the above do we not have a business model? Oh, you mean it can't possibly WORK! Except that it just did. Well, I'm sorry, b…

What you've just stated is, essentially, the business equivalent of the lottery. You could almost replace any reference to business terms in your post with "lottery" and have the same amount of truth applied.

The whole point of a "model" is that it's repeatable and definable. "Getting acquired because they fear us" isn't a business model.

Re: What Really Happened When Facebook Bought Instagram

#102

Post by masomenos » Mon, May 06, 2013, 2:21 PM UTC

marknutter wrote: post #97

alan_cx wrote: post #92

Earlier quoted context omitted.

The reason people think the American Dream is as you state, is because the get rich quick people made it up to justify their exploitative wealth (I think slavery counts as exploitation), and need the common man to be educated and work hard for them, while spending all their earnings making the get rich quick people richer. In short, the American Dream is a fraud. Capitalism means a huge chunk of people literally have…

You need to read a book called The Millionnaire Next Door. The "American Dream" is very much a real thing and it rarely involves luck or exploitation. At the time of the book's writing, 80% of millionnaires in the US were first generation millionnaires and a large part of them first generation American immigrants. > Capitalism means a huge chunk of people literally have to be poor, other wise costs rise, inflation go…

If you liked Millionaire next door, let me recommend Nassim Nicholas Taleb's "Fooled by Randomness" for counterpoint.

Re: What Really Happened When Facebook Bought Instagram

#103

Post by marknutter » Mon, May 06, 2013, 2:34 PM UTC

masomenos wrote: post #102

marknutter wrote: post #97

Earlier quoted context omitted.

You need to read a book called The Millionnaire Next Door. The "American Dream" is very much a real thing and it rarely involves luck or exploitation. At the time of the book's writing, 80% of millionnaires in the US were first generation millionnaires and a large part of them first generation American immigrants. > Capitalism means a huge chunk of people literally have to be poor, other wise costs rise, inflation go…

If you liked Millionaire next door, let me recommend Nassim Nicholas Taleb's "Fooled by Randomness" for counterpoint.

How is it a counterpoint exactly?

Re: What Really Happened When Facebook Bought Instagram

#104

Post by ryguytilidie » Mon, May 06, 2013, 3:02 PM UTC

logicallee wrote: post #70

SandB0x wrote: post #69

Earlier quoted context omitted.

You seem to have snuck in "I start threatening them." as if that is easy and repeatable.

You seem to have snuck in the word "easy" there. Out of curiosity - what percentage of real, viable business plans do you think are "easy"? Seriously though. While not easy, it is 100% repeatable - it is one of the great ways to build a business. (Actually, regardless of whether the incumbent buys you out - their investors or those who regret being investors migth instead.)

"Out of curiosity - what percentage of real, viable business plans do you think are "easy"?"

I'd imagine they vary based on the business plan. I think what others are trying to say, but you don't seem to want to hear, is that while many business ideas are say, 20% to succeed, this particular business plan is <1% to succeed.

Re: What Really Happened When Facebook Bought Instagram

#105

Post by Goronmon » Mon, May 06, 2013, 3:03 PM UTC

marknutter wrote: post #103

masomenos wrote: post #102

Earlier quoted context omitted.

If you liked Millionaire next door, let me recommend Nassim Nicholas Taleb's "Fooled by Randomness" for counterpoint.

How is it a counterpoint exactly?

Well, "Millionaire Next Door" uses examples of millionaires to provide some form of guidance (at least on some level) to non-millionaires on what it takes to actually become wealthy.

Though, I haven't read it, I would assume that "Fooled by Randomness" would explain the wealth of the individuals from "Millionare" as more to do with luck than anything else, and that it's not repeatable. And that fulfilling the "American Dream" has more to do with being lucky than with hard work.

Re: What Really Happened When Facebook Bought Instagram

#106

Post by ryguytilidie » Mon, May 06, 2013, 3:03 PM UTC

Kiro wrote: post #55

SandB0x wrote: post #31

You may as well be reading about a rock band here. This story does not and will not apply to you. This is the one in a thousand/million fairy-tale of the frivolous app dreamed up in coffee shops, fuelled by rapid investment and sold for vast sums to a tech giant without so much as a whiff of a business model.

What's with the negativity? Are you telling inspiring musicians to stop trying as well?

I read it more as he's telling aspiring musicians to not go all in on a <1% prospect, which doesn't seem all that nuts to me.

Re: What Really Happened When Facebook Bought Instagram

#107

Post by marknutter » Mon, May 06, 2013, 3:16 PM UTC

Goronmon wrote: post #105

marknutter wrote: post #103

Earlier quoted context omitted.

How is it a counterpoint exactly?

Well, "Millionaire Next Door" uses examples of millionaires to provide some form of guidance (at least on some level) to non-millionaires on what it takes to actually become wealthy. Though, I haven't read it, I would assume that "Fooled by Randomness" would explain the wealth of the individuals from "Millionare" as more to do with luck than anything else, and that it's not repeatable. And that fulfilling the "Americ…

Wow. No, I'm sorry, but TMND explains very clearly, backed by solid statistics, how people become rich, and it doesn't have anything to do with luck. In fact, the process of becoming a millionnaire is quite boring and unglamorous; invest prudently, cut expenses, don't buy new cars, have a modest mortgage, etc. Very few of the millionnaires interviewed in the book "got rich quick". The vast majority of millionnaires in the U.S. got there over a long period of time of living well below their means; long enough for luck to be completely factored out.

Re: What Really Happened When Facebook Bought Instagram

#108

Post by darkarmani » Mon, May 06, 2013, 3:21 PM UTC

alan_cx wrote: post #92

[deleted] wrote: post #77

[deleted]

The reason people think the American Dream is as you state, is because the get rich quick people made it up to justify their exploitative wealth (I think slavery counts as exploitation), and need the common man to be educated and work hard for them, while spending all their earnings making the get rich quick people richer. In short, the American Dream is a fraud. Capitalism means a huge chunk of people literally have…

> Capitalism means a huge chunk of people literally have to be poor, other wise costs rise, inflation goes mental and capitalism fails.

So you are saying it is a zero-sum game? There is no rising tide lifting all boats?

I'm not sure if i believe this. I don't think the tide rises boats as high as people dream about, but to say that more people wouldn't be poor if we were in pre-capitalism days is ridiculous.

Re: What Really Happened When Facebook Bought Instagram

#109

Post by newbie12 » Mon, May 06, 2013, 3:32 PM UTC

joonix wrote: post #94

SandB0x wrote: post #31

You may as well be reading about a rock band here. This story does not and will not apply to you. This is the one in a thousand/million fairy-tale of the frivolous app dreamed up in coffee shops, fuelled by rapid investment and sold for vast sums to a tech giant without so much as a whiff of a business model.

In addition there aren't many lessons to be gleaned from the story. It might be entertaining to read but in the end it's as if you just wasted 20 minutes playing Solitaire.

Bombermine is more fun.

Re: What Really Happened When Facebook Bought Instagram

#110

Post by jakejake » Mon, May 06, 2013, 3:39 PM UTC

joonix wrote: post #94

SandB0x wrote: post #31

You may as well be reading about a rock band here. This story does not and will not apply to you. This is the one in a thousand/million fairy-tale of the frivolous app dreamed up in coffee shops, fuelled by rapid investment and sold for vast sums to a tech giant without so much as a whiff of a business model.

In addition there aren't many lessons to be gleaned from the story. It might be entertaining to read but in the end it's as if you just wasted 20 minutes playing Solitaire.

I would say if there is a lesson at all - that it's helpful to be on friendly terms with several of the Silicon Valley elite before you start your company. Not taking away from Instagram being a great app, but it was catapulted towards success due to the founders personal connections.