3 ms·
I would say "yes". But that's pure speculation. However I wouldn't be surprised there was a bidding and that big names like Google or Apple might have been in t
by hub_ 14y ago
I would say "yes". But that's pure speculation. However I wouldn't be surprised there was a bidding and that big names like Google or Apple might have been in the loop.
Time will tell, or maybe not.
- sp332 14y agoThe dilution is an interesting point. Why would the founders or Facebook accept dilution (at 50% valuation!) just before an acquisition?
- recoiledsnake 14y agoIt could've gone like this: Facebook: We'll give you $600M Instagram: No, we want $1B FB: No deal Instagram: Ok we're going to raise our own money FB: Good luck with that IG: See, we raised our own money and just closed it too and our Android app has 1M downloads on Google platform... FB: panic Okay lets do $1B
- ubi 14y agoI think this makes a lot of sense, given the price tag and seemingly quick turnaround.
- loverobots 14y ago"FB: Good luck with that" Instagram: We'll try Google. They could use something to jumpstart Google+
- sp332 14y agoI'm not sure about this. If we say FB offers $600M, and Instagram is holding out for a billion, it wouldn't make sense for Instagram to go prove that it's only worth $500M (valuation), right?
- sowbug 14y agoIf it was $50M on $500M post, then it's just a bit more than 10% dilution, which isn't too bad. But either way, that $50M buys two things: (1) a floor on near-term future price negotiations, and (2) a strong signal that they were nowhere near needing to sell and instead that they could go another 18+ months growing their walled garden of eyeballs. That second point could have spurred a big company like Facebook to overpay a little now rather than having to risk squelching an upcoming competitor a year from now at a GeoCities-like price.
- cienrak 14y agoThis was a Geo-Cities-like price - not adjusted for inflation ;)