Facebook buying Instagram for $1 billion!

Rico · April 10, 2012, 08:28:38 AM

Geez! It's just posting pictures with some filters. Wild!

http://abcnews.go.com/Technology/facebook-buys-instagram-alarming-users-two/story?id=16107176#.T4RRQFHDdJo

billybob476 · April 10, 2012, 08:32:38 AM

It's not the functionality, it's the userbase :) I can also see a very logical integration of Instagram's functionality into Facebook photo sharing. Who knows, soon enough we may be able to do basic photo touch ups (red eye reduction and the like) right on Facebook.

Rico · April 10, 2012, 08:37:28 AM

Oh, I get why it's worth what it is but I still am stating to feel that in a few years these purchases are going to maybe not seem like the best idea. People are very fickle with App's and so on.

Joe - you need to write that billion dollar app soon! :)

Bryancd · April 10, 2012, 08:55:34 AM

Quote from: Rico on April 10, 2012, 08:37:28 AM
Oh, I get why it's worth what it is but I still am stating to feel that in a few years these purchases are going to maybe not seem like the best idea. People are very fickle with App's and so on.

x2, this is starting to feel like the late '90's internet valuation bubble all over again. This deal is being VERY heavily scrutinized by Wall Street, I can tell you that.

KingIsaacLinksr · April 10, 2012, 10:48:30 AM

I also thought the 1Bil price tag on this was a bit high, considering it doesn't generate any revenue atm. Between this and Draw Something getting purchased by Zynga, these companies sure seem buy-happy. It makes me wonder if FB is concerned with losing users....

It will be curious to see how many users leave over this...I'm watching warily, but beyond that this doesn't affect me (because I'm already on FB blegh). I am disappointed that Instagram sold to Facebook, but also get that the CEO was just offered a billion dollars and considering he probably didn't have a good idea on generating revenue, this was as good as any idea to do it. But I can understand why some people are outraged about it too.

King

Bryancd · April 10, 2012, 12:03:36 PM

Well, no one is outraged. FaceBook can use it's cash however it wants. And this was a great move by Instagram for the companies employees and original founders. What is being looked at in a critical manner is the valuation and if it's warranted and who might be next. What exactly are you "watching warily"? How does this impact you personally? :blink

Dangelus · April 10, 2012, 12:12:51 PM

I just hope they don't integrate it too tightly with Facebook. No doubt they will have a "log in wi Facebook" option but I hope it retains some semblance of independence.

I'm convinced that the high value pertains to the user base and huge amount of personal data that Facebook gets with the deal. That's where the money is.

There are great examples of big boys taking over start ups and crippling them or just plain buying them to shut them down. Google and Sage TV springs to mind. I think this is the worry that users have.

Personally I'm a fan of independent developers and software over huge multi billion dollar corporations as I feel they are more in tune with what their customers want as opposed to giving them what their business strategies dictate but I guess if I was instagram I'd have taken the money too. It's just too much money to turn down.

KingIsaacLinksr · April 10, 2012, 01:03:34 PM

Quote from: Bryancd on April 10, 2012, 12:03:36 PM
Well, no one is outraged. FaceBook can use it's cash however it wants. And this was a great move by Instagram for the companies employees and original founders. What is being looked at in a critical manner is the valuation and if it's warranted and who might be next. What exactly are you "watching warily"? How does this impact you personally? :blink

Umm, according to the many angry comments I've *sorta* read, there are plenty of people angry with Instagram, unless you meant here on the forum. There are people leaving, its just a question of how many at the moment.

Eh, ok, warily was too strong a word. Just making sure the service doesn't go downhill like I figure it will. Most startups that get taken over have their quality product destroyed over time. Its happened before and it'll happen again. I use Instagram so whatever changes there will affect me.

I'm not talking about Wall Street or the vaulation if that's what your talking.

King

QuadShot · April 10, 2012, 01:33:15 PM

Not sure WHY folks would bail out on Instagram? Kind of stupid if you ask me. It's a, fun program. Just because a big company bought them out makes them "evil, sell-outs?" C'mon! Really. If someone came along and offered me a BILLION dollars for my company, pretty sure I'd sell... :)

KingIsaacLinksr · April 10, 2012, 01:47:12 PM

Quote from: QuadShot on April 10, 2012, 01:33:15 PM
Not sure WHY folks would bail out on Instagram? Kind of stupid if you ask me. It's a, fun program. Just because a big company bought them out makes them "evil, sell-outs?" C'mon! Really. If someone came along and offered me a BILLION dollars for my company, pretty sure I'd sell... :)

Some People vehemently hate Facebook. They don't want anything to do with them so to have Instagram, a social network in its own right, get taken over by FB caused them to leave. Its not like FB has always been pro-consumer with some of its privacy policies.

King

QuadShot · April 10, 2012, 01:53:53 PM

Silliness King, pure and simple.

Rico · April 10, 2012, 02:10:03 PM

I can easily see why people would dump Instagram if Facebook buys them. Like Tim says, many people don't want to do Facebook - for a variety of reasons. And if Instagram becomes pretty much a part of Facebook, that will drive some people away. Of course the other side is it will also bring some new people to Instagram too.

Bryancd · April 10, 2012, 02:43:49 PM

You guys understand that Instagram doesn't give a rats butt if some people dump them or are mad. They just made a fortune with their product and sold it to the single largest and currently dominant social media site the world. There job is done, off to innovate some more.

Rico · April 10, 2012, 02:52:32 PM

Of course we understand that Bryan. I was speaking from the perspective of the users and Facebook.

QuadShot · April 10, 2012, 03:07:06 PM

Unless FaceBook drastically changes Instagram, the cross-feeding of posts into FaceBook can be turned off, just like with Twitter. So...if they don't want to be part of FaceBook, don't see why they would have to. I'm sticking with Instagram. I think it's fun..