Why Did Facebook Pay $1B CASH for Tiny Startup Instagram?

Colossal acquisition of tiny startup Instagram, in advance of the Facebook IPO. Was it worth it?

Let’s consider what they get:

1. Local data: “where were you when you took this photo?”
2. Personal data: “what are your photos about.”
3. Quash a strategic threat: Photos are where it’s at in social.
4. Monetize mobile: FB made no money on mobile, until now.
5. Acquire talented mobile team.

Instagram is a steal for Facebook and a smart strategic move.

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