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The fact that they gave up $1B proves Facebook (specifically Zuckerberg) thought they'll get something more valuable to them than that $1B.

Even if the purchase was 'defensive' – preventing s competitor from using Instagram to chisel away at Facebook's monopoly – they expect the result of the deal, versus the alternative, to be worth even more to them than the $1B they gave up. (This is essentially tautological, unless you think Zuckerberg is irrational.)




>The fact that they gave up $1B proves Facebook (specifically Zuckerberg) thought they'll get something more valuable to them than that $1B.

My guess is that the "something more valuable to them" is protecting their $100 billion valuation. It all makes perfect sense if you are prepared to suspend reality and accept that $100 billion is what Facebook is worth.




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