Hacker News new | past | comments | ask | show | jobs | submit login

1. It was published the day after the Instagram acquisition that Facebook had assigned a valuation of $75 billion to their stock.

2. I doubt Facebook bought Instagram for the "social graph" . Facebook has always been laser focused on user engagement. One of the core features on Facebook that keeps users engaged is photo sharing with their friends. Instagram was an up and coming challenger in the sharing photos with your friends arena and that is the primary reason Facebook bought them.




Re: #1, this is a part of a reasonable answer to "How are they worth so much?" - the purchase of Instagram was made "roughly 30 percent in cash and 70 percent in stock[1]", meaning that the $1B was really ~$300M in cash and a bit under 1% of Facebook.

Maybe that still looks high, but it's certainly not as outrageous as a billion dollars. The bit that makes it look crazy is Facebook's valuation at nearly $100 per active user.

1: http://dealbook.nytimes.com/2012/04/18/with-instagram-deal-f...




Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | Legal | Apply to YC | Contact

Search: