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$30 million for Revision3, $1 billion for Instagram. Is there really that much of a gap in value between these two companies? I know I followed Rev3 closely be

$30 million for Revision3, $1 billion for Instagram. Is there really that much of a gap in value between these two companies? I know I followed Rev3 closely because I enjoyed old-school TechTV. I also know I'm not an Instagram user. Am I the minority, here? Just trying to understand what's at play here, and what it means for the future.

deleted 14y ago
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brandnewlow 14y ago
Honestly? No one gives a crap about content. It's not exactly worthless, but it's been pretty solidly commoditized. Which company do you think had more content? Revision3 or Instagram? My guess is Instagram had 100x more content than Rev3. The way a company like Revision3 gets a big valuation is by having massive distribution AND a big hit that goes mainstream, much like what Draw with Me did for OMGPOP. Revision3 never had a crossover hit that the average Joe watched. They stayed niche, and $30m is maybe as much as they could get for that audience and distribution footprint. Meanwhile Instagram had MASSIVE distribution, in the millions, AND was generating content at an epic clip. No one piece of Instagram content might be as "sticky" or engaging as a single piece of Revision3 content, but wouldn't you want to have all those photos instead of a bunch of shows watched by a small but fervent audience?
- 7952 14y ago
  The actual content is not really niche compared to a lot of podcast style video. Gadgets/Films/Gaming are mass appeal. Their delivery and style just gets access to a particular type of audience. In that sense they are very similar to Instagram.
- protomyth 14y ago
  Given all the articles about people being pretty unhappy with not being able to watch Game of Thrones on HBO, I don't think content is commoditized. I also don't think a picture on Instagram is equivalent to an episode of GoT.
  - brandnewlow 14y ago
    Game of Thrones is world-class Content with a capital "C". Revision3 had nothing so valuable or desired. That was my point. Their content never really escaped the commodity zone.
Matt_Mickiewicz 14y ago
For every instagram, there's 100 Revision3 stories... other other "acqui-hires" for a few million. $10m raised over 3 rounds, $30m exit... probably not a great outcome for any of the investors.
ryanwhitney 14y ago
"$30 million for Revision3, $1 billion for Instagram. Is there really that much of a gap in value between these two companies?" Yeah, only one was perceived as a threat to Facebook.

deleted 14y ago

[deleted]

brandnewlow 14y ago

Honestly? No one gives a crap about content. It's not exactly worthless, but it's been pretty solidly commoditized. Which company do you think had more content? Revision3 or Instagram? My guess is Instagram had 100x more content than Rev3. The way a company like Revision3 gets a big valuation is by having massive distribution AND a big hit that goes mainstream, much like what Draw with Me did for OMGPOP. Revision3 never had a crossover hit that the average Joe watched. They stayed niche, and $30m is maybe as much as they could get for that audience and distribution footprint. Meanwhile Instagram had MASSIVE distribution, in the millions, AND was generating content at an epic clip. No one piece of Instagram content might be as "sticky" or engaging as a single piece of Revision3 content, but wouldn't you want to have all those photos instead of a bunch of shows watched by a small but fervent audience?

7952 14y ago
The actual content is not really niche compared to a lot of podcast style video. Gadgets/Films/Gaming are mass appeal. Their delivery and style just gets access to a particular type of audience. In that sense they are very similar to Instagram.
protomyth 14y ago
Given all the articles about people being pretty unhappy with not being able to watch Game of Thrones on HBO, I don't think content is commoditized. I also don't think a picture on Instagram is equivalent to an episode of GoT.
- brandnewlow 14y ago
  Game of Thrones is world-class Content with a capital "C". Revision3 had nothing so valuable or desired. That was my point. Their content never really escaped the commodity zone.

Matt_Mickiewicz 14y ago

For every instagram, there's 100 Revision3 stories... other other "acqui-hires" for a few million. $10m raised over 3 rounds, $30m exit... probably not a great outcome for any of the investors.

ryanwhitney 14y ago

"$30 million for Revision3, $1 billion for Instagram. Is there really that much of a gap in value between these two companies?" Yeah, only one was perceived as a threat to Facebook.