Facebook announced that it has reached an agreement to acquire Instagram for about $1 billion in a combination of cash and shares. Instagram is a popular photo-sharing app for mobile devices.
Zuckerberg said “we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.That’s why we’re committed to building and growing Instagram independently”
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$1bn for a startup valued at $25m just a year ago – with no obvious business model? Compared to the $35m Yahoo paid for Flickr, doesn’t seem a bargain.
“An environment in which many investors were willing to overlook traditional metrics such as P/E ratio” – definition of the 2000 dot com bubble. Just saying…