Does anyone else think this valuation is insane? It's like $300/registered user. The company doesn't have a business model. No way the handful of employees are worth $1B. My mind is blown.
Facebook acquires Instagram
41–50 of 394 posts
Re: Facebook acquires Instagram
#42I 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.
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Re: Facebook acquires Instagram
#43I 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.
wait - you think this is actually true?
Re: Facebook acquires Instagram
#44According to Crunchbase and Techcrunch, they raised $40M just a month ago at a $500M valuation. Something doesn't add up here. A billion dollar deal like this had to take more than a couple of weeks to close... http://techcrunch.com/2012/03/08/no-filter-required-instagra...
Is it against some regulation to do negotiations concurrently?
Re: Facebook acquires Instagram
#45I 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.
+1. It really is nice and the news coming from acquirer than the acquired makes it sound better. That just makes it that much more difficult for them to say "it is no longer a service that interacts with other social networks" without a public backlash among user community. Good to see the commitment coming from Zuckerberg.
Re: Facebook acquires Instagram
#46[deleted]
Re: Facebook acquires Instagram
#47How many photo-related startups has Facebook acquired now? And what do they gain from Instagram? A user base? Most of them are probably already on Facebook? Technology for handling photos? Doesn't Facebook already do this as well as anyone else? Design and UI talent for mobile apps? Don't they already have Mike Matas?
Most of Instagram's "technology for handing photos" uses S3, as described in previous Instagram tech blog posts. Instagram however has a massive big data structure which would lead to any big company getting high value out of them. Why use the tools they open sourced last week to improve your reliability if you can just acquire the entire team?
I'm not entirely convinced that Facebook can benefit from Instagram's infrastructure more than the Instagram can benefit from Facebook's.
Re: Facebook acquires Instagram
#48That's an awful lot of money for a business that had no revenue and had no business model of any kind.
http://windonaleaf.net/post/20464525754/instagram-perform-ad...
Re: Facebook acquires Instagram
#49I'm not very clear on the main driving factor of this acquisition: is it a talent grab, a technology acquisition or did they acquire Instagram mainly for the customer base. FB really wanted Instagram. They've been in talks since August 2011: http://thenextweb.com/insider/2011/08/24/facebook-couldnt-ac...
I feel like I can safely declare that there is no such thing as a one billion dollar talent acquisition.
Well, it certainly wouldn't happen if your company employs anyone other than Turing, Einstein, Dijkstra, and Knuth. That said, that doesn't mean that the talent isn't inflating the price at least a little bit.
Re: Facebook acquires Instagram
#50How many photo-related startups has Facebook acquired now? And what do they gain from Instagram? A user base? Most of them are probably already on Facebook? Technology for handling photos? Doesn't Facebook already do this as well as anyone else? Design and UI talent for mobile apps? Don't they already have Mike Matas?
Perhaps they just see Instagram as a threat? If everyone is sharing their photos on Instagram, they are not doing so on Facebook.
I wonder what sort of people putting photos on Instagram weren't also sending them to Facebook. Wouldn't it likely be people who don't/won't use Facebook anyway?