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Is $1 billion really a good deal for Instagram?

 
 
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paul
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PostPosted: Tue Apr 10, 2012 5:54 pm    Post subject: Is $1 billion really a good deal for Instagram? Reply with quote

A company with just a dozen or so employees, no profits and just 2 years old.

Surely Facebook buying Instagram for a cool 1 billion isn't such a great deal.

Or can someone convince me otherwise?
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adigaskell
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PostPosted: Wed Apr 11, 2012 3:01 pm    Post subject: Reply with quote

For the Instagram guys it's a great deal Cool
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paul
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PostPosted: Thu Apr 12, 2012 11:39 am    Post subject: Reply with quote

Absolutely!

Some seem to say it's even a good buy on Facebook's part, but I'm not convinced.
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PostPosted: Fri Apr 13, 2012 11:15 am    Post subject: Reply with quote

The deal keeps people tied into Facebook. Facebook's long term goal is to BE the internet. The more that they can do to increase their influence, the better for them. The Instagram buy means that people will be using Facebook even more, especially on their mobile devices, as they won't need to leave their comfy padded cell to view photographs or discuss them with friends.

Facebook's move into developing their search engine is another example of this behaviour. Meanwhile, Google is trying to become more like Facebook with the redesign on the G+ pages. However, Big G needs to get back in the game quickly and buy Pinterest (likely) or Twitter (extremely unlikely).
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