Facebook Buys Instagram for $1Bn
- Thread starter Jokester
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Soldato
I have never been able to understand Instagram's popularity. I tried the app..."ooo bunch of sodding image filters to make my photos look 'hip' for 5mins" and uninstalled. I just couldn't understand why folks would want to ruin colourful images by lobbing a sepia filter at them.
It is an insane amount, but as said it does have a heap of users mostly on Twitter.
It is an insane amount, but as said it does have a heap of users mostly on Twitter.
Soldato
bit sad about this, i'm quite a big fan and i worry what the facebook boys will do to it 
Permabanned
I have never heard of them. I don't know where they get their valuation from. I bet they would have sold for a fraction of the sale price. Maybe facebook does that sort of thing to increase the value of facebook.
Soldato
Yes to Facebook. I doubt it about Apple/Google/Microsoft. I could give reasons why not for each, but it's too early.
Just because I feel like playing devils advocate; we would have said the same thing about RIM five years ago, and look at them now. I don't actually agree, because Apple is more than just phones, but yeah...
Agree entirely about apple etc... Was actually what I was coming in here to say.... Read an economist article very similar to this a while ago about apple being nothing like a bubble company.
Am more concerned about fb and apps though... Never even heard of instatgram, although ironically this will increase their publicity and usage...
kd
Soldato
You don't know the meaning of the world 'bubble' if you think this is an indicator
Soldato
Facepalm.
They're not, actually. In terms of engagement (ie users browsing Intagram, commenting, liking on Instaram itself), numbers are through the roof.
It isn't just a tool - and that's why Facebook want to control it, because it is the only real and direct threat to one of Facebook's core value points out of the last five years.
Facebook isn't buying a community (most Instagram users are already Facebook users), it isn't buying an app, it isn't buying a tool, it isn't just doing an aqu-hire.
It is buying a mode of engagement that a substantial number of people (and more recently, businesses) are flocking to for life sharing. It is buying something so that others can't have it. That's why it paid twice the price Instagram was valued at last week by a consortium of technology VCs. That's why it will be maintaining Instagram as a separate brand and app.
As a shareholder, I'm glad it has.
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I see the Instagram user as predominantly a Twitter user. It's more than just an app, it's the basic conceptual difference between Facebook and Twitter. Twitter = follow someone, no need to ask their permission to stalk (therefore you tend to follow more celebrities /sports stars you are interested in). Instagram is the same. Facebook = ask someone for permission to stalk them, which stands to reason you have met/know one another to varying degree.
Facebook has been trying to move in that direction for some time now where you can "subscribe" to someone. This acquisition seems to me that Facebook is aggressively trying to blur the lines.
No doubt Facebook themselves could have coded the ability for users to edit photos, so that's certainly not what they went and bought for 1BN.
Facebook has been trying to move in that direction for some time now where you can "subscribe" to someone. This acquisition seems to me that Facebook is aggressively trying to blur the lines.
No doubt Facebook themselves could have coded the ability for users to edit photos, so that's certainly not what they went and bought for 1BN.
Soldato
Smells like a DotCom bubble is growing. Either that or Facebook really has gone bat**** mental.
I use Instagram to post photos on Twitter and to people on Instagram. As long as Facebook doesn't ruin that all is fine by me. Never posted to Facebook from Instagram.
I use Instagram to post photos on Twitter and to people on Instagram. As long as Facebook doesn't ruin that all is fine by me. Never posted to Facebook from Instagram.
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Sounds brilliant.
Soldato
Aside from the basis formed by your not knowing or understanding why Facebook purchased Instagram for that amount (or why Y purchased X in the tech startup market in general), how do you figure that a DotCom bubble is growing?
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This is quite a smart move imo (not the 1bn price tag though, that's ridiculous). Instagram is a twitter thing I always thought so they will no doubt restrict it to facebook only so, people will either leave instagram and stick with twitter, or facebook will get some more activity on its site.
It really won't be long until an alternative pops along to become as popular. Pudding Camera for example does the same more or less with a load more effects and multiple camera effects
It really won't be long until an alternative pops along to become as popular. Pudding Camera for example does the same more or less with a load more effects and multiple camera effects
Caporegime
The obscene valuations of various companies such as facebook, groupon and instagram makes me think that we may be heading that way. I have read plenty about facebooks valuation and none of it explains why on earth the company is worth so much. It relies on far too many external factors to generate revenue. Users cannot be assigned a value in this context yet that seems to be what the valuation is based on. "If we have half a billion regular users then we must be able to monetise those users when the reality may be that you shoot yourself in the foot when you do so. Social networks rely on a user base which can disappear very quickly.
As far as I can see, a lot of people that use facebook a lot, do so because they use it a lot. When you start using it for a few hours a day you add a lot more content which leads to more checks to see what others have posted in reply etc etc. It reminds me of games like Tiny Tower where you are rewarded for playing it but the more you play, the more you need to play to maintain it.
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Associate
Now Facebook can send you adverts dependant on your location.
Never seen the whole big deal with Instagram personally, but i'd expect ad's coming pretty soon.
Never seen the whole big deal with Instagram personally, but i'd expect ad's coming pretty soon.
Caporegime
That might be a little bit of an oversimplification of the matter. People don't believe themselves to be great photographers but the filters can quite often improve a crummy picture. Then theres the fact that if so many people like doing that to their photos, there must be a lot of people that like to see photos like that.
People who put instagram filters on their photos are unlikely to think "christ I hate photos with filters but when I do it I'm an artistic genius."
If facebook requires you to link it to an account though I think it will sink instagram.
Don't get it myself.
Take a picture, apply a filter that makes it look like you developed it 10 years late on cheap 80s stock and hey presto. Anyone looked at pictures from the 80s? Wouldn't they all look much better with proper colours?
Take a picture, apply a filter that makes it look like you developed it 10 years late on cheap 80s stock and hey presto. Anyone looked at pictures from the 80s? Wouldn't they all look much better with proper colours?
Soldato
The difference between this "Dot-com Bubble" and the last one is that, back then, the population of the Internet was comparatively tiny. Now, everyone is on the Internet.
Web services like Instagram can be worth hundreds of millions almost overnight simply because of the sheer number of quality visitors they get. Advertising.
With that said, $1bn for what is basically a web-based Photoshop filtering service for your photo's? It does seem a little crazy. I think Facebook got spooked by Instragram's potential to become a competitor, especially since their Android version only launched a few days ago yet has already had millions of downloads.
Web services like Instagram can be worth hundreds of millions almost overnight simply because of the sheer number of quality visitors they get. Advertising.
With that said, $1bn for what is basically a web-based Photoshop filtering service for your photo's? It does seem a little crazy. I think Facebook got spooked by Instragram's potential to become a competitor, especially since their Android version only launched a few days ago yet has already had millions of downloads.
Soldato
Flickr and Photobucket must be worth TRILLIONS.