Facebook Buys Instagram for $1Bn

[Jokester]

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.

The company valuations are based on the same thing though, potential for future revenues.

Market analysts here in the US are saying the buyout bears the hallmarks of a bubble now and that Facebook won't make the money back.

The whole following people who aren't your (Facebook) friend to look at their photos thing? That's very niche along the lines of Myspace.

 

[Hatter The Mad]

I may be completely wrong

Indeed. Sorry, I don't yet have time to respond to your post... but most of it is wrong. Like I said, if you trust your judgement, take out a short on flotation day.

 

[Robbo]

What's the point of taking photos though if you never share them? I can remember everything I've seen I don't need photos to remind me, but if I want someone else to know what I've seen I have to show them a photo.

It depends what the pictures are of. I wouldn't want a load of randoms following me on it just because I took a picture they liked.

If I want someone I know to see a picture I've taken I have plenty of very easy ways to get it to them so it's hardly a problem.

 

[NathanE]

The company valuations are based on the same thing though, potential for future revenues.

Market analysts here in the US are saying the buyout bears the hallmarks of a bubble now and that Facebook won't make the money back.

The whole following people who aren't your (Facebook) friend to look at their photos thing? That's very niche along the lines of Myspace.

Of course they won't make the money back. If they were interested in making money out of this tiny feature that almost any decent developer could knock up a prototype for in a few hours, Facebook would have just added some photo filters to its own Facebook app that already exists for the various phones out there.

This was a strategical acquisition aimed at removing a possible future competitor.

 

[Jokester]

This was a strategical acquisition aimed at removing a possible future competitor.

So they will be out every free app that could potentially become a future competitor?

Why not buy out Pinterest, it does exactly what Instagram might have become, but is actually doing it now and is considered the 3rd largest social network behind Facebook and Twitter.

They've missed the boat competitor wise - this has panic buy all over it.

 

[malfunkshun]

First thing that comes to mind is Two and a Half Men. The new guy, Walden, being a billion because he sold M$ an app to go with the Zune player "whats a Zune"

 

[Dmack]

A lot of lads I know use instagram solely to follow hot girls who always post pictures. I follow a few also. Instagram is massive on twitter and is used my most people on my timeline when they post a picture. It's also used a lot by celebrities who post a picture and then get 1000s of likes and comments. Good move by FB as instagram was becoming a massive social photo community.

 

[Locke]

First thing that comes to mind is Two and a Half Men. The new guy, Walden, being a billion because he sold M$ an app to go with the Zune player "whats a Zune"