Great Timing Facebook

“A million dollars isn’t cool. You know what is cool? A Billion Dollars”

– Quote from “The Social Network”

The Instagram deal is really awesome and Facebook timed it perfectly.

      Instagram grew viral since the time it started and has garnered the top spot for a photo sharing social platform on iphone. They cracked the little magic code on how to engage the users and attract more, while facebook has been struggling to do with its own photo sharing feature.

But just the iphone, really? There are millions of android users and had they been able to use instagram, there would be no looking back for instagram.

This is exactly what happened. Instagram released it’s android version with a fresh round of funding. This was the trigger for the Facebook, which according to a news source from Venturebeat prompted Zuck to bring a closure on the deal in less than 48 hours. The android version must have been the deal breaker.

Now Instagram, which stands at $500 million valuation, cannot get a better deal at this point with money twice the valuation. Also the growing popularity of Pinterest, which is another media sharing app, surely puts this deal in perspective. Instagram might have become bigger had it not been acquired, but with more players coming into the picture, this might have been the smartest move.

The Facebook Instagram deal

2 thoughts on “Great Timing Facebook”

  1. $1 billion today != $1 billion a year, two years or three years ago.Today’s dollar doesn’t by the same amount of stuff as yesterday’s dollar. We’re not just in a new tech bubble but a currency bubble.

    1. Interesting terminology to describe it. I like the currency bubble part of it. But if you see throughout the history we have been living in a currency bubble which never seems to burst. Every year, year over year, a dollars buys less of what it could the previous year.
      Anyways, billion or no billion, facebook acted smartly and promptly by buying instagram before it could overtake facebook. Mobile is the future and Facebook needs some heavy presence on it. Mobile is where it seems to be lacking or having a weak foothold.

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