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13.04.12 Facebook meet Instagram


Much has been said, and written, on the massive news that Facebook paid $1 billion dollars for a company that was less than 600 days old, with 35 million users and no website. Want the low-down on what really happened and why, here are some selected links…

Was it too much money

Andy Baio, writing for wired:

If we look strictly at the acquisition cost per user, Facebook got a relative deal with the Instagram purchase, paying roughly $28 for each of Instagram’s 35 million users. (The median cost across all the acquisitions is about $92 per user.)

Source: Wired

Why sell instagram?

Garret Murray nails it…

Why sell Instagram?

I think we all know the real answer: Instagram couldn’t make any money. They had 27 million users and they still weren’t making a dime. It doesn’t sound like they had any real strategies for doing so, either. In fact, just before their acquisition, Instagram closed another $50M in funding.

Source: gmurray

Will it make money

And for an interesting look at how to monetize it, check out this article from AdWeek

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