Just finished this lesson with my business class tonight! We were discussing this article. Very interesting discussion.
Facebook has just acquired the maker of the iPhone application
Instagram, which lets users do simple photo editing and sharing with
friends, including social-network functions such as “like” and comments.
The application itself is in no way complex enough to explain the $1
Billion price (even the valuation of the company on Feb 2., $30 million,
would be a rich price for such application). The earnings are not
either: There are no revenues at present because the firm has
concentrated on building a user base, and has not launched any revenue
model, such as advertising or other commercial tie-ins.
Read the rest of the article here: http://blog.insead.edu/2012/04/instagram-for-1-billion-what-is-it-really-worth/
Have a great night!

