Facebook and Instagram
Facebook just purchased photo-sharing app Instagram this week for $1 billion dollars in cash and stock. The deal will bring Instagram staff to Mark Zuckerberg’s fold and will continue to make improvements for Instagram while Zuckerberg’s engineers are itching how to integrate it to Facebook. Instagram is one of the most-used visual engagement platforms, while close rival Pinterest is now the number 3 social network in the planet today, Instagram is spearheading the photo-sharing revolution on mobile. Instagram launched its iOS app in Q4 of 2011 then released an Android app last week. So what’s so special about this deal aside from being Facebook’s first acquisition?
I think Facebook should have gone with NYSE and there's reports they actually are considering making the change. Link: http://www.bloomberg.com/video/93298615-top-headlines-facebook-considers-nyse-hp.html
I also believe Facebook was over-hyped and over-priced for its actual dollars. The valuation was handled completely wrong. I'm not an economic expert, but if your revenues are only $2-$3 billion per year, why should you be valued at nearly 100x that? Even Google and Apple are only valued at 10 - 15 times what they actually bring in revenue! :-)