do you think it’s a good move or just an attempt to remove competition? Anyone thinks FB will go myspace way or they have staying power?
$1B is still an exorbitant amount. Hai…how I wish I had some programming bone :sigh:
Re: I know I am a bit late but with Facebook buying Instagram for $1B...
FB has extra cash to buy companies and if does not work, just wrap that business all together. I dont think that Instagraam was in any competition with FB.
Re: I know I am a bit late but with Facebook buying Instagram for $1B...
Well many did see it as a competition in the sense that instead of posting your status you could post a tweaked and enhanced picture. People on twitter generally use it and it was certainly gaining more and more popularity. Regardless of that, $1B is excessive, isn't it?
Re: I know I am a bit late but with Facebook buying Instagram for $1B...
Aray aaj kal $1B is nothing for companies. Microsoft bought Hotmail for $400 Million in 1997. That is like about 600 million of 2012 dollars. In 2006, YouTube was bought by Google for $1.65 billion. That is like $1.89 billions of todays money.
Re: I know I am a bit late but with Facebook buying Instagram for $1B...
But these two acquisitions had somewhat developed business model and strategy, and I believe (negligible) revenues. Whereas this one has only 13 employees and offers a service that many other apps are also providing. The only leverage they probably have is that they were able to attract large number of consumers.
So what do you say if fb is here to stay?
Re: I know I am a bit late but with Facebook buying Instagram for $1B...
"The only leverage they probably have is that they were able to attract large number of consumers. "
Well, if this is true, then maybe worth it. If Facebook were to go public, its market cap, from my recollection, is $50B. so 1B is 2% of ther market cap. Depends if this is a cash transaction, or if they pay in stocks. Latter is preferable of course.
High tech is a crapshoot anyway. Who knows where Facebook will be 5 years down the road. The base case scenario - if it gets Apple type valuation, that is a 12X increase. Most probably, the best it can do is reach Google valuation. That would be 4X increase from current levels.
I dont like these odds.