When Facebook bought Instagram they basically bought a photo sharing app with 10-50 Million monthly active users. Today it has 3 Billion monthly active users. I

When Facebook bought Instagram they basically bought a photo sharing app with 10-50 Million monthly active users. Today it has 3 Billion monthly active users. In hindsight, $1B looks a very good deal for a giant like Instagram. But it wasn't a giant back then, it was just a photo sharing app and it was really insane. So it must not be about the app or the network. Facebook paid that price to enter the mobile social media market as the market leader. BTW Instagram raised $50 million at the valuation of $500M, just 4 days before the Facebook acquisition. %100 return of investment in 4 days, I think that's insane.