Facebook acquires Instagram

Post by tptacek » Mon, Apr 09, 2012, 7:59 PM UTC

tedunangst wrote: post #216

tptacek wrote: post #155

Earlier quoted context omitted.

I don't see anyone reacting "Instawho?", let alone doing so "quite rightly". Instagram is extremely popular. Stories about how Instagram's backend works have been at the top of the front page on HN for weeks. I think you think this is some kind of Jets/Eagles thing here, and I'm wearing the green jersey. No. I don't have a side, and I don't think the competitive battle happening here is rational ; I just acknowledge…

Small point: Your Jets Eagles analogy is really opaque. I'm still not even sure if you realize they both wear green jerseys. (I assume that was the point, but it's most unclear.)

Post by dkrich » Mon, Apr 09, 2012, 8:01 PM UTC

MaysonL wrote: post #150

marcamillion wrote: post #130

Earlier quoted context omitted.

Ahhh....good point. That does change the formula a bit, but even still...what's the likely 1 year return on pre-IPO FB stock? 3X if so much? I doubt it. Anyway, it's better than 2X, so I guess they can't be pissed.

But, quite possibly, it could be .5X, or .25X... Current FB valuation is somewhere around 25X revenue ...

Post by j_baker » Mon, Apr 09, 2012, 8:05 PM UTC

brlewis wrote: post #82

j_baker wrote: post #28

I have to say: it's nice to see an acquisition where the product is valued enough to not be summarily taken out back and shot. I'm curious how it fits into Facebook's product strategy though. It doesn't seem to be their style to keep a brand around that doesn't help their main brand somehow.

FriendFeed wasn't taken out back and shot either -- it's still running, albeit with some broken features. It doesn't hurt Facebook to leave a service running. With Instagram, I think it's a case of user acquisition trumping product strategy. If lots of people are joining Instagram, Facebook wants to own it regardless of how it fits with their main brand.

Post by pbhjpbhj » Mon, Apr 09, 2012, 8:07 PM UTC

louhong wrote: post #226

According to Wired.com the CEO is taking about $400 of the Billion. Source: http://www.wired.com/epicenter/2012/04/facebook-buys-instagr...

Post by joeblau » Mon, Apr 09, 2012, 8:08 PM UTC

mdda wrote: post #220

joeblau wrote: post #202

Can someone explain how this isn't insider trading? Day before deal: - Instagram closed a $50 million Series B round from Sequoia, Josh Kushner’s Thrive Capital, Greylock and Benchmark at a $500 million valuation. Day of deal: - Company gets purchased for 1 billion. - All investors instantly double investment.

It's not insider trading, since the stock is not traded on a public market : There's no presumption that all the facts are out in the open. As long as there's no misrepresentation, it's all 'just business'. How about : "Let me invest right now, so that I won't vote against the FB offer you've got on the table". Or "If you let me invest now, I can make a recommendation to the FB board that they acquire you".