TheRodinhoods

Why did Facebook pay 1 Billion US$ to buy Instagram? My theory!

What surprised me about the Instagram acquisition by Facebook was not the transaction itself, but the price.

1 billion US$?

Not 811 million US$, not 769 Million US$ but a clean 1 Billion US$.

And this is for a Company with a few million users, zero revenue etc etc. So there was/is no real ‘basis’ for this number, right?

Now, I’m thinking, Facebook declared a clean 1.0000 Billion US$ profit in its last financial year as also stated in its IPO filing document to the SEC:

See this image taken from the SEC filing:

This is a better illustration of the same numbers from TechCrunch

So, was there a meeting of minds between Facebook and Instagram when it came to the magical number of 1 BILLION US$?

– I mean, you go to a party, meet some creepy, long haired bloke who tells you in a South Indian accent, “Yeah, FB bought my Company for 349 milion US$”,  then all you will remember the next day after your hangover is hungover, is “a few hundred million dollars” and a south Indian accent.

BUT YOU AIN’T GONNA FORGET A BILLION (Say Bi – li – un ) Dollars.

– If I were the Instagram guy negotiating and read the Facebook SEC filing and figured that ZUCKY BABA gets turned on by 1 BILLION DOLLARS – then I would use the same number on him to make him realize that we share the same FETISH?! 

He will like me, won’t he, if we have the same 1 BILLION DOLLAR fetish?

Forget ‘liking’ me (pun intended), I’m saying – he will buy me!

– Lesson and Take out:

Strange are the stories of the Internet world. Even the Gods don’t know sometimes!

So, just put your head down, and make the next Instagram happen!

*****