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Facebook buys Instagram photo sharing network for $1bn

     

ChanandlerBong

5:46 pm on Apr 9, 2012 (gmt 0)

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[bbc.co.uk ]

Facebook has announced it is to buy Instagram - the popular photo-sharing smartphone app.

Facebook is paying $1bn (629m) in cash and stock for the takeover.

Instagram was only launched in October 2010 - initially just for the iPhone before being offered as an Android app last week.

RonPK

5:57 pm on Apr 9, 2012 (gmt 0)

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That's a lot of money for a company that has yet to make a dime/penny.

But then it can't that be hard for Facebook to put their ad system on Instagram. And of course a fresh bunch of users (=growth) is a nice asset for a company that intends to go public.

engine

8:41 am on Apr 10, 2012 (gmt 0)

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That's a big acquisition.

Mark Zuckerberg said, on the acquisition [facebook.com]
This is an important milestone for Facebook because it's the first time we've ever acquired a product and company with so many users. We don't plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.

r4bet

12:33 pm on Apr 10, 2012 (gmt 0)

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@lifehacker i saw some instagram alternatives which are more cool (one of them is older than instagram also!)
instagram just give photoshop filters for cellphones. nothing more..

StoutFiles

1:15 pm on Apr 10, 2012 (gmt 0)

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They vastly overpaid because they are worried about competition. Facebook is an extremely unstable company, with a bunch of users that don't even want to use it but feel they are forced to because everyone else is doing it. All it would take is "the new Facebook" to come along and turn Facebook into MySpace, and it could happen literally overnight.

engine

2:17 pm on Apr 10, 2012 (gmt 0)

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That is way overpaid, even if they want it.
It seems like just unreal money being thrown around.

Strapworks

3:23 pm on Apr 10, 2012 (gmt 0)

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What happened to the value of money? Its like it really doesn't matter anymore. No negotiating, no evaluating, just give them a nice round big number. $1 billion is such a ridiculous number.
Why would you invest in Facebook if they are willing to waste money like that?

vivalasvegas

6:19 pm on Apr 10, 2012 (gmt 0)

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What happened to the value of money? Its like it really doesn't matter anymore. No negotiating, no evaluating, just give them a nice round big number. $1 billion is such a ridiculous number.


Yes really, and it makes me feel ridiculous. A company that was started less than two years ago is already worth an amount I can not even comprehend?!

To me all these incredible amounts of money some companies are valued at (Apple, Facebook, etc) signal a new bubble ready to burst.

bhartzer

6:25 pm on Apr 10, 2012 (gmt 0)

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A lot of money for a company that only has 9 employees.

incrediBILL

8:18 pm on Apr 10, 2012 (gmt 0)

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That's crazy stupid money.

I'd like some too as long and they're just chucking it out the window

Leosghost

8:31 pm on Apr 10, 2012 (gmt 0)

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Why should Mark care ? ..it isn't his money ..it isn't real money..it's "spend what we want..because all the little people are going to be buying into the IPO, via their pension fund managers etc , the pension fund managers and Mark and the VC's will get bonuses and be rich"..and when ( not if ) it all goes TU down the line..their money will be safely out of the way ..and the little people will carry the can..and be told to tighten their belts..

pontifex

8:41 pm on Apr 10, 2012 (gmt 0)

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giggle :-) It is just too expensive! Sorry folks...

Digmen1

10:05 pm on Apr 10, 2012 (gmt 0)

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And I'd never even heard of Instagram !

Sgt_Kickaxe

2:24 am on Apr 11, 2012 (gmt 0)

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Great acquisition from a technical standpoint, one that Facebook users will appreciate, but a poor business decision at that price.

I've used Instagram occasionally but now that they are no longer independent the value of their service just dropped considerably in my opinion. Then again I have my own servers and photo editing software so I'm not Mr Joe Public.

isorg

8:39 am on Apr 11, 2012 (gmt 0)

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They aren't paying for the filters. They are paying for access to every iPhone & iPad user, and their network of contacts. (That's what I heard on the radio this morning.)

StoutFiles

12:23 pm on Apr 11, 2012 (gmt 0)

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I'm not sure why any Instagram user would continue to use the product now, because it's obvious that Facebook is trying to buy all their information for commercial use. Run away!

inbound

1:27 pm on Apr 11, 2012 (gmt 0)

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Most of the public don't seem to care much about privacy. They do care if you force them to think about it; but most of the time they just do what they like doing and don't worry about the privacy issues - hence I doubt that many users will stop using it (and that will be more than made up by those who continue to sign up).

The "price" is crazy, but so is the valuation of Facebook. At least they are buying things that make sense in conjunction with their core business.

londrum

1:36 pm on Apr 11, 2012 (gmt 0)

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Facebook could have bought the Green Bay Packers for that price, or the Chicago Bears. They are both valued at 1 billion too.

Digmen1

5:56 pm on Apr 11, 2012 (gmt 0)

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That's the same amount Walden sold his two companies to Microsoft for !
(He said they were not that happy with the price they paid)

Panthro

7:57 pm on Apr 11, 2012 (gmt 0)



Yes really, and it makes me feel ridiculous. A company that was started less than two years ago is already worth an amount I can not even comprehend?!


Lol, I know what you mean. But FB's been around a bit longer than that.

skibum

6:48 am on Apr 12, 2012 (gmt 0)

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While Apple stock might seem expensive at $600+ a share, based on normal, sane valuations metrics it is actually pretty cheap, cheaper that Google. It sounded like their may have been other interested parties in Instagram. It's only 650 million less than Google paid for YouTube and this purchase won't have every media company under the sun lining up to sue Facebook!

StoutFiles

12:12 pm on Apr 12, 2012 (gmt 0)

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Lol, I know what you mean. But FB's been around a bit longer than that.


He was talking about Instagram. A company started less than two years ago (October 2010) with 11 employees that don't create a tangible product that people can't live without should never be valued at a billion dollars.
 

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