Tuesday, April 10, 2012

POP! RE: Facebook to Buy Photo-Sharing Service Instagram for $1 Billion

Facebook to Buy Photo-Sharing Service Instagram for $1 Billion - NYTimes.com:

Is it just me or does this deal make a huge POP sound that can be heard around the world? I am sure I am not an expert into the financials of this deal nor will I comment on the specifics around the architecture that it appears FB wanted to leverage, but I was a short-term user of Instragram and for the life of me, I don't get this!

Granted I do do not use my phone for taking a lot of pictures so perhaps the value is lodged in the thousands of users who now only take pictures via smartphones. While I found the tools available in the tool well thought out and realzie that the "workflow" available in the tool also far exceeds other similar tools, I found it novel in a way that is hard to explain. I would use the app for a week or two and then completely ignore it for months.

We'll have to wait to see how this pans out for final judegement. I personally think that  Kevin Systrom did an excellent job of lining up the right investors at the right place and time.  Still a POP from a long term strategy though...

'via Blog this'

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