I'm mystified as to why Instagram is worth a billion dollars (of money), but then I guess I don't understand why Facebook has a billion dollars to pay for it, either. Old guy syndrome. Kids these days! Newfangled coddleypoo! I need to learn how to go "humph."
PetaPixel had sufficient fortitude to test what would happen if some iconic photos got Instagrammed. As Chad Thompson, who passed this link along to me, said, "Oh, the horror!"
I've been liking PetaPixel lately. It feels vaguely TMZ-ish, somehow, but then I find it entertaining too. I mean, how can you not like a slow-motion video of faces being blasted by air?
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Original contents copyright 2012 by Michael C. Johnston and/or the bylined author. All Rights Reserved.
Featured Comment by Hugh Crawford: "A billion dollars only seems like a lot of money when you don't have 17 billion dollars.
"Software and web companies get bought for one of two reasons: 1) because it's the fastest way to acquire some technology and a bunch of engineers actively developing that technology and maybe some infrastructure; 2) because it's the fastest way to acquire a bunch of users who don't want to switch platforms (a.k.a. lock in), and simultaneously eliminate competition.
"Instagram is not worth a billion dollars for reason one. Some talented developers could clone it in a week, and Facebook has infrastructure up the wazoo, so I would have to say it's for reason two.
"I would say that the billion dollars valuation is because Facebook has a billion dollars it has nothing else to do with. Facebook rightly feared that Apple might buy Instagram and own a gateway to Facebook. Just because Apple is so busy trying to kill Google doesn't mean they don't have the time to eat Facebook's lunch too. I'm sure Instagram was playing Apple, Google, and Facebook against each other, and all three of them could come up with a billion on a moment's notice.
"Also, spending a billion on Instagram will probably (looks like it did already) bump Facebook's stock up a billion, effectively making it cost free to Facebook, or at least to Mark Zuckerberg who can pretty much do anything he wants with Facebook."