4 ms·
If that's really the case then there's no way Facebook is worth what (most) people think. Instagram launched in October 2010 and were acquired with only 13 emp
by nas 14y ago
If that's really the case then there's no way Facebook is worth what (most) people think. Instagram launched in October 2010 and were acquired with only 13 employees. If a tiny company like that even has a chance to dent Facebook's market position then they are in an extremely precarious spot, IMHO.
More startups like Instagram are going to appear. No one can predict when or where but given the low barrier to entry, it's going to happen. If it costs Facebook $1B per "bullet" to kill them then they are going to run out of bullets.
- flom 14y agoA lot of startups "like" Instagram already exist, but ONLY Instagram has 40+ million users, that's the difference. Just because 100 more startups get created in this space doesn't mean any of them will acquire a sufficient userbase to threaten Facebook.
- dkrich 14y agoI'm thinking that his point (which I agree with) is that if a photo-sharing app with twelve people and no revenue can come from nowhere in less than two years to threaten Facebook's very existence, Facebook may not be worth $100 billion. I think the crux of this debate is whether you think Instagram was poised to become a real threat in the social space to Facebook. I think Facebook overreacted, and given this information (that Zuckerberg essentially bought it up himself) the disconnect from a realistic valuation seems even more likely. But then again, they may never get a chance to buy up companies with stock that possesses so much hype.
- alain94040 14y agoTrue. But on the other hand, look at RIM (Blackberry) and Apple (iPhone). Any large incumbent can be displaced. They take longer to die because they have cash, but they die nonetheless.
- tybris 14y ago"Everything is worth what its purchaser is willing to pay for it"