Facebook Buys Instagram for $1B



THAT'S A LOT OF MONEY

Instagram raised $40m 1 month ago to total $47m in total invested.

$0,047,000,000
$1,000,000,000

:O
 
Also, in other news:

Facebook is counter-suing Yahoo on the patent lawsuit.
AOL just sold some patents for $1b to Microsoft.

THE WORLD IS CRAZY, PEOPLE ARE PAYING A BILLION DOLLARS FOR A FREE PICTURE APP AND PATENTS SO THEY CAN SUE PEOPLE MORE.
 
Instagram's very monetize-able and gives FB mobile cool factor they haven't been able to synthesize on their own, but already there's "I'm deleting my account" backlash.
 
Instagram's very monetize-able and gives FB mobile cool factor they haven't been able to synthesize on their own, but already there's "I'm deleting my account" backlash.

I agree, it's monetizable and helps build Facebook's brand.

However, mobile apps have only been popular for the past 2-3 years (outside of the tech crowd). I don't think that's enough time to see how quickly these apps churn.

I don't see apps lasting more than 5 years and I think real popular apps probably have a 2-3 year lifespan. The average app's lifespan is probably <1 year.

My point is that this is an incredibly risky buy because I don't see Facebook recouping $1bill in advertising via Instagram in less than 5 years.

To me, this looks like a silicon valley circle jerk.
 
Bubble.jpg
 
^^ they are not acquiring them for the profit. They are looking for the talent behind it and for the experience they are gaining as well as even more user engagement.

Potential direct profits are just a supplement. Very potent on top of that too.
 
^^ they are not acquiring them for the profit. They are looking for the talent behind it and for the experience they are gaining as well as even more user engagement.

Potential direct profits are just a supplement. Very potent on top of that too.

6-10 employees, most of whom will leave in a year or two, aren't worth the price tag. Heck, I don't think they're worth 250 mill.

As for whether Instagram improves the Facebook brand in a meaningful way, only time will tell.

Historically, MnA's are a net negative for the acquiring company. I don't see this deal being an exception.
 
Instagram's very monetize-able and gives FB mobile cool factor they haven't been able to synthesize on their own, but already there's "I'm deleting my account" backlash.

yeah, but does instragam lose that 'cool' factor now? like if tumblr is ever bought, i can see it becoming uncool quick.

30 mil users is impressive though. the big question if you wanted to replicate is how to make your service cool and take off. who were the early movers who got instagram going?

it seems it's girls who decide what internet shite is cool and fashionable, i.e. pinterest and tumblr.

^^ they are not acquiring them for the profit. They are looking for the talent behind it and for the experience they are gaining as well as even more user engagement.

Potential direct profits are just a supplement. Very potent on top of that too.

what are you talking about, i hope this is just to increase your post count. instragram only has (had?) 6 employees! and it's not a hard app to create
 
what are you talking about, i hope this is just to increase your post count. instragram only has (had?) 6 employees! and it's not a hard app to create

lol, i really have to stop replying to idiotic comments, but:

why does that service has 30m users and made all other photosharing services irrelevant?

Technical skills is something useful, but there are enough experts in coding. Execution and ideas is what is pricey.

please, first think, than post.
 
FB needed to do something. I think they had a flood of pics that they couldn't handle. They make all that money and still my android FB app cant load pics. Fail.
 
The appeal of instagram is it has built-in image filters that appeal to emos, it happened to snag the king-hell emo of all time and with him comes millions of unattractive girls and the metrosexuals who fail to fuck them.
 
I don't see apps lasting more than 5 years and I think real popular apps probably have a 2-3 year lifespan. The average app's lifespan is probably <1 year.

You don't see apps as a whole last more then 5 years? What do you think will take it over, the next big thing or just other apps? Or you don't see an app that goes live last more then 5 years and it will eventually die and people will move on?