How Instagram Could Have Cut a Better Deal

[HardOCP News]

I'm certainly no expert but how can anyone claim Instagram got a bad deal? Heck, in my opinion, the $300M cash alone was way more than they should have got.

But since that time, Facebook’s initial public offering has taken place — and we all know what happened. Facebook shares have fallen substantially, and the Instagram acquisition is now valued at about $735 million. The Instagram founders are out almost $300 million, at least on paper.

 

[Bees]

The deal would look better with a sepia filter.

 

[teh_chem]

Instagram: The app of choice for hipsters who want to take their decent phone pics and make them look like crap again, and show them to all of their other hipster friends and bask in how "retro" they look.

I found it laughable that FB bought it for (at the time) twice its valuation (Instagram was valued at $500m just before the acquisition). Just to buy-out a serious photo-sharing competitor using 25% of their cash-on-hand, they must have been pretty worried.

Regardless, what that article fails to point out is that Instagram was a whopping 13 employees and 9 investors. $750m/22 people = $34m apiece evenly split. Of course it wouldn't be evenly split, but it's still an enormous amount of money.

 

[tim_m]

take the money and run

 

[dandragonrage]

I don't understand how investors can be so stupid as to think that companies like Facebook, Instagram, Zynga, Youtube, etc., are worth much money. Just because many people use them doesn't mean there is a ton of money in it.