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forwardslash · 4397 days ago · link ·
Instagram utterly confuses me; how is it worth a billion dollars?
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I'm not sure how they came up with that valuation either. I thought they were just recently throwing around $500M. At any rate, I'm thinking the number primarily has to do with two things:
1: Facebook is soon to be flush with IPO cash. 2: Instagram is just a photosharing app on the face of it, but people use it a lot. When you combine the app with a Facebook profile, location data, and the facial recognition of other people in the photos, it really provides a ton of value that Facebook can sell to marketers. Facebook needs a better foothold in mobile sharing of our information. Facebook and Google need more ways for us to tell them about what we are doing, and when and where we are doing it. Instagram really lends to that. A possible 3rd reason for the pricetag, is that Google was expressing interest, and FB just wanted to close the deal.
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