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Killing The Fun In Sepia And B&W: Facebook To Buy Instagram For $1 Billion
Facebook has not even collected the cash from going public and it is already precommitting funds to expand growth (what's wrong with its organic growth? Not good enough?) by purchasing tangential services, such as everyone's favorite photo filtering application Instagram for the ridiculous price of $1 billion (a company which completed its Series A round 14 months ago for a $20 million post-money valuation). In other words, FB hasn't even flash dashed (or crashed - thank you BATS) yet, and it is already facing Traffic Acquisition Costs, because with 30 million users, assuming none of them use Facebook, each user just cost Facebook $33.333 (and realistically much more since virtually everyone who uses Instagram uses Facebook). Shutterfly stock not happy as one more greater fool drops out of the race. That said, we read to encounter the inescapable labyrinth that shutting down one's Instagram account is set to become in a few short days.
Just released on the Facebook page:
Facebook to Acquire Instagram
Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.
The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later this quarter.
Mark Zuckerberg, founder and CEO of Facebook, posted about the transaction on his Timeline:
I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.
For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now, we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests.
We believe these are different experiences that complement each other. But in order to do this well, 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. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.
We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.
These and many other features are important parts of the Instagram experience and we understand that. We will try to learn from Instagram’s experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure.
This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.
We’re looking forward to working with the Instagram team and to all of the great new experiences we’re going to be able to build together.
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This must be bullish for Groupon. Maybe Facebook can buy them next...
FACEBOOK, CREATED BY DOUCHEBAGS FOR DOUCHEBAGS, EXCLUSIVELY.
-They have 30 million customers!
-So how much does each customer pay for an Instagram?
-It is free.
-So they make it up on volume?
Volume is key, so is FLOW; like FLOW from nothing for nothing but mostly toxic shit.
B.U.B.B.L.E.
They didn't get 30 million new customers.
If you're not paying for it, you're not the customer.
You're the product that's being sold.
"I'm not in the business. I am the business."
http://www.youtube.com/watch?v=3IWYx1E7aBQ
I'm speechless. The level of total bullshit has far exceeded what even I could imagine. Anymore and I think my head will finally explode.
It's bad enough I have to suffer these bullshit photos popping up on facebook, seeing about 20 instagram edits of 1 single picture. It's quantitative easing for pictures, loads and loads of the same shit picture.
So Mircorsoft buys 800 patents from AOL for $1B, and Facebook buys Instagram for $1B. Who got the better deal?
That's a hard one.... Hmm.
Although in other news, just in from the Onion, Facebook to buy Adult Friend Finder for $10Billion dollars, deal to be put through by Goldman Sachs.
Some entertaining Facebook tard fails. the one where the engaged chick is thanking her some guy for a great nite of anal sex, and her fiance replies to the post is awesome! Epic Facebook Fails!! - YouTube
They don't call them Instagrams for nothing...hey did I just say that?
I think the pic with this post is very apt,
rain clouds forming
+1... Accurate analysis...
I would have tossed in "FRAUDSTER DOUCHBAGS" just to refine the accuracy...
I am trying to find some info on the founder of this "company" to see if there was some kind of underhanded/nepatistic exchange of money going on here.
anyway.. Mike Kreiger cofounder of INstagram was one of Obama's state of the Union guests.
Hey man don't worry they're ALL Jews!
"KILL THE JEW!"
--Coen Bros's A Serious Man
Facebook is very much like the stock market. Once you get yourself involved in it, you gonna end up losing more than just your money, and your identity...and worse of all, you basically helping the jbags get even richer.
jbags? really? how about the hatebags such as yourself?
so the patents that grant the right to produce millions of plastic coasters has the same value as a camera app with hipster filters? k got it
It's gonna be funny to wath this fucker crash and burn.
DisgraceBook is built on tech bubble 2.0
Wipe that smirk off of Suckerberg's Douche bag face...
Just another Useful Idiot Frontboy Douche bag handed NSA data mining software...
$1 billion seems a bit much for Instagram but then again $1 trillion seems a bit much for Apple.
HOW ABOUT THOSE TRILLIONS UPON TRILLIONS FOR FAILED BANKING SECTOR VIA FED'S QE?
AAPL is cheap with a PE of 1 if everyone in China ought an iPhone 4s
making any further delay of the facebook IPO a bit of a problem for Mr. Suckerberg.
THEY DEFENDING THE FRANCHISE OF FB...CHEAP!
There's only organic growth left in something like a garden. In the economy it's all fake now...
or along the theme of this article, the eCONomy is now in silico.
"fake" seems harsh...how 'bout "virtual"?
Here, I'll use it in a sentence: CNBC reports that the economy is virtually recovered.
Never get their money out of that....a waste of capital. Why would you buy a company that's going to continue to make these mistakes........gambleing..
If it wasn't for families and women, Facebook would be fucked
Or anyone else who complains about their rights to privacy and liberty and then volunteers to puts their life on the internet.
Bosses check DisgraceBook, cops check DisgraceBook, its just insane..
When the cops subpoena your Facebook information, here's what Facebook sends the cops
http://blog.thephoenix.com/blogs/phlog/archive/2012/04/06/when-police-su...
And now you know why I hate web 2.0.
INstagram has no business model, and was acquired for $1B. wtf.
Facebook is already losing out social market share to tumblr & reddit. Facbook has peaked. I hope it burns like Yahoo for this malinvestment.
It's more like Tech Bubble 2.0. Which is why it's going to be funny to watch all the people reinvesting their money in this shit crash and burn.
There may well be something going on you're not aware of.
Obviously Instagram doesn't have much value as a SERVICE, but who knows what all the PICTURES are worth? What about the value of the identities of all the users?
It's the media business, remember. The "product" is usually the audience.
SPOT ON!
AND JUST KNOW THAT THE BOOGEYMEN DON'T USE FB NOR INSTAGRAM, at least not for their "terrorist" activities....
If they went through Goldman, they could have bought StripperGram....
"We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience."
indeed.....like cyber spying, otherwise how do they expect to survive without the government put?
https://joindiaspora.com/
Diaspora A free personal web server that implements a distributed social networking service.Mossad, NSA, CIA, FBI and everyone else have a Plug in for it already! LOL!!
But seriously I LOVE it!!
Fuck FaceBook!
it is just everyone uses facebook!
Just like Goldman Sachs, AIPAC and the rest of the Zionists want!
gotta stay ahead of any real trouble.. what better way to keep your finger on the pulse of the people than to let the people tell on themselves!!
Pre-Crime!! Sponsored by Google and FaceBook! Zionists bring Pre-Crime Convictions to Life!!
Unless you're on a D* pod that isn't one of the main ones, and that pod you're on has a decent admin, "your" data isn't "yours" like they claim it is. Create another account, delete it, and then see if you can log into it again after two weeks. You'll still be able to, and you'll probably still get email notifications too. In that respect, they're just as bad as Facebook. It's also certainly not distributed. They can't even get the federation functionality sorted properly. That being said, it DOES contain a lot more interesting information compared to Facebook.
Just like in WarGames however - the only winning move is not to play (or at least, not to put ANY identifiable data online).
We believe these are different experiences that complement each other.
I think that same line was in the Sears-KMart merger release.
Damm, this was a great app. Let see how FB screws it up.
FB First day trading:
-61.75%
-99.99% on BATS
All photos are public by default which means they are visible to anyone using Instagram or on the instagr.am website
http://www.gramfeed.com/instagram/tags#drunk
But Facebook has all that personal data they can sell to marketing companies without their account holders realizing it.
Business idea... Come up with an internet theme and add a social network aspect to it. IPO here we come!
Examples: Online cobblers' association network. Flipchart Fanatics. Kool Kids' Kollective. I've gone all alliterate.
Anyone remember the DotCom bubble???
I seem to remember that valuing a company on users and page views was a dumb fucking idea.
Oh well, this time will defnitely be different, right?
Facebook management to all internet users. "Whatever you like to do you will now do our way, under our supervision. And don't expect us to come up with any great ideas on our own."
Wtf... Instageam.....taking shitty iPhone photos and making them lamer.
How do they generate any revenue?
Uh, they don't.
Haven't you heard, you don't need revenue anymore. YOU JUST NEED USERS!!!!!
Users are valued at $33 a head.
WTF.
Silly me trying to build a business actually manufacturing real product, selling the real product to retailers trying to build a real business.
I should have just made some shitty free smartphone application that adds filters to make your photo look like it was taken by a 1967 Polaroid. Then I could be bought by a massively overvalued corporation that doesn't produce anything of value for $1 fucking billion too!!!!
Where am I, what fucked up world did I wake up in????
Then you have AOL shooting up 40% because Microsoft bought AOL's patents to protect its Facebook investment. Since someone else could have bought the patents and entered in a series of lawsuits once Facebook goes public and bankrupt the company.
I think we need an expression that goes further than Full Retard. Even Corky wouldn't be this stupid.
The next time I see someone do something incredibly stupid I am going to yell out, "He must work on Wall Street".
Walk into a glass door, "You must work on Wall Street!"
Back your car into a pole, "Man, you MUST work on Wall Street."
Fuck, I could have just created the next major internet MEME, where's my $1 billion?
What you have to do is create WorkOnWallStreet.com which posts pictures of suits doing stupid things and automatically captions them with "You must work on Wall Street".
Next thing you know, you'll be valued at $50 million and be bought by Facebook along with PeopleOfWalMart.com and the Cheezburger network, provided they don't IPO first.
They're just better businessmen than you. "Competition" is a big part of the story. If you've got a business and people aren't buying your product, it's not a good business.
Don't be discouraged, just remember: you usually have to fail a few times before the big score.
Fingers crossed that Facebook notices my diapers.com startup. It sells diapers, FYI.
I can't wait for 2001 to come.
feces.com is for sale too
What a commentary on the sad state of the world that FB actually has $1B...
Squidface on Instagram...
It's almost poetic that it's wearing a jacket from The North Face, as if it's alluding to the possibility of three other faces of the beast.
Bubble Bubble Bubble!!!
Do what they told ya
http://www.youtube.com/watch?v=aix4XQzHfYU&feature=related
Facebook is one of those by the media hyped things producing nothing of value, adding nothing useful to the interwebz, and therefore it will probably not be popular forever. This acquiring of Instagram was required to make the empty box seem less empty. For the intelligent investor, it's still an empty box.
All that information they collect is not valuable for governments?
Its all just BS, how is there any value to governments in having a bunch of Facebook retards 'info'? Its all 99.9% meaningless jabbering about trips to the store or what you thought of some TV show....big deal. Keeping tabs on the fuktards...whatever.
the facebook ipo will be the biggest sell the news event in the history of the market.
i still have no idea what facebook is. I am so out of touch
Facebook is a place where idiots screw up and get busted by spouses and bosses, and in 1 case a girl putting on her Facebook she is having so much fun on her class field trip having sex with all the boys there, which her dad is the first to see the message. Its quite hillarious. Epic Facebook Fails!! - YouTube
Facebook is a bit like the first time people acquired mobile phones. They would call their "other half" on the phone saying that they would be home in five minutes. Then two minutes later they would phone saying "I'm going to be a minute late. Now the beauty of Facebook is that when your "other half" goes to use the toilet in Starbucks, you will get a Facebook message on your mobile phone (some things don't change) saying that "I have just finished wiping my arse at Starbucks" so you still get the update but so do the other 874 friends too. Saves a lot of phone calls.
I few years ago I unfriended everyone & tried to close my FB account, but nothing happened.
Then I became a friend of Sara Palin and started asking questions in the comment section, after her semi-daily ruminations.
Account was disabled in short order.
Sara’s followers don’t like opposing views or questions on her policy.
A couple of quick thoughts on this deal. First, what portion of the deal is structured with FB stock? I'm guessing relatively high so if you use overvalued FB stock well then it's easy to get to $1 billion really fast. If FB is worth $100 billion (current estimates of valuation for the IPO), basically they have to give up 1% to acquire this company. I doubt FB used much cash in this deal. Second, who was the investment banker on this deal? Has to be the same IB's that will be leading the FB IPO as they need all of the support, documentation, "proof", etc., etc., etc. to justify the value of the upcoming FB IPO. Let's not also forget that the IB will generate a much higher fee on an overvalued acquisition (no conflict of interest here).
This is how the scam works. Use counterfit money (i.e., FB stock) in exchange for a business model that does not generate real economic value but which can be spun to support a higher valuation for the acquiring company. All of these transactions become self fulfilling prophecies until in the end, the laws of supply and demand take hold. We saw it in 2000 with the great dot.com crash and we will see it in 2013/2014 with the great social media crash as well (or sooner as evidenced by early problems being experienced by the likes of Groupon). Everyone seems to be pre-occupied with active users which appear to act as the basis of the valuations. God forbid anyone actually uses EBITDA/cash flow to value a business. Of course the technology world will tell you its different this time or that the non technology world just doesn't get it as well and to one point, they are correct as at least this time, revenue is being generated (as oppossed to the dot.com bust when generating revenue was not even needed). But in the end, when they finalize grasp the novel concept that revenue actually has to exceed expenses to survive, valuations will plummet, businesses will fail, and the social media companies will come to realize that they were simply buying and selling the same users, over and over and over, from one site to another, and that they had been had by the IB in Wall Street that had already moved on to their next pump and dump scam.
Yup. Backstop for the IPO valuation.
It would be interesting to know who the investors were for Instagram's Series A round. There might be some familiar faces.
And still, theres no 'retail' anywhere to panic buy IPO manias....LOL good luck idiots!
I just ® " ALGO Grams"
SHITFACEBOOK
Zuckerberg is going to be a washed up divorcee working for IBM in twenty years.
Facebook even appears in most modern thesauruses
Main Entry: Facebook [fey-s-bokk] Show IPA
Part of Speech: adjective
Definition: stupid
Synonyms: absurd, asinine, daft, empty, fatuous, flat,foolish, frivolous, futile, harebrained, idiotic,illogical, imbecilic, innocuous, insipid,
jejune,laughable, meaningless, mindless, pointless,puerile, ridiculous, sappy*, senseless, silly,trifling, unintelligent, vacant,
vacuous, vain,vapid, weak, wishy-washy, worthless
Notes: Facebook means silly, lacking significance or insubstantial; Facebooked means mentally deranged,mad or very foolish
Was is the NSA or CIA that created FB?
Can't imagine what makes Instagram worth $1 billion. I mean it is a cool little program and I enjoy using it from time to time, but in no way is it the be all and end all, nor do I feel any partcular dependence on it. It is not like it is the only useful photo app in town. IMHO this is a foolish use of funds.
Guys, it's window dressing for the IPO!
'we have 800 million (mostly fake or animal) users! -$80b
'and the fasted growing photo sharing site Instagram! -$90b
That's all there is to it.
Source: http://fixed-mobile-convergence.tmcnet.com/news/2012/04/10/6248573.htm
Quote: "Instagram is a developer of photo sharing application for mobile devices and is backed by Andreessen Horowitz, Sequoia Capital, Greylock Partners, Matt Cohler, Baseline Ventures and individual investors including Adam D'Angelo, Jack Dorsey, Chris Sacca, and Steve Anderson."