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Instagram was a tactical pre-IPO aquisition to stave off uncertainty. Facebook likely made their money back in the IPO deal, and Instagram's valuation has falle
by debacle 14y ago
Instagram was a tactical pre-IPO aquisition to stave off uncertainty. Facebook likely made their money back in the IPO deal, and Instagram's valuation has fallen drastically with Facebook's stock price adjustment.
- davidu 14y agoNone of your points has anything to do with "worth." Worth as we are using it is almost universally defined as the price an arms-length buyer is willing to pay for the total sum of an entity. So Twitter is worth far more than $100mm. It's currently worth billions of dollars. Tomorrow, that could all come crashing down, but today, it's a fact. What you suggest is not anything remotely associated with fact. Deciding a company is worth whatever amount of cash they have on hand, or have raised (you weren't clear on which metric you got your worth basis from) is really a naive view of valuation. And now I'm sure I'll get flamed off News.YC like I always do.