ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Management Students Voices ( MBA,BMS,MMS,BMM,BBA) > HOT Debates - The Big Fight

Why did Facebook Pay a billion dollars for its Instagram Acquisition ?

Why did Facebook Pay a billion dollars for its Instagram Acquisition ?

Discuss Why did Facebook Pay a billion dollars for its Instagram Acquisition ? within the HOT Debates - The Big Fight forums, part of the Management Students Voices ( MBA,BMS,MMS,BMM,BBA) category; Facebook recently acquired Instagram and at a whopping 1 billion USD. Why did Facebook Pay a billion dollars for its ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (1 (permalink))
Kartik Raichura
kartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond reputekartik has a reputation beyond repute
 
kartik
Founder & CEO at Management Paradise
Management Paradise Guru
 
Status: Offline
Posts: 4,328
Join Date: Nov 2004
Age: 29
Exclamation Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - April 10th, 2012

Facebook recently acquired Instagram and at a whopping 1 billion USD.


Why did Facebook Pay a billion dollars for its Instagram Acquisition ?

Why do u think Instagram was worth 1 billion US$ ? Or wasnt it?

Would love to hear your thoughts on it.
Advertisements


Help Others -> Help Yourself !


Want to work with us and revolutionize management world ? send in a small writeup of what you will do and how with your cv on careers at managementparadise.com

Friends: (92)
Reply With Quote
Related to Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
Skin care industry booming with baby boomers from $20 billion to $114 billion Sunanda K. Chavan Service Sector Management 0 August 26th, 2011 03:48 PM
Would you buy yourself a slave for 90 dollars? Dimpy Handa HOT Debates - The Big Fight 1 May 8th, 2011 09:11 PM
50 dollars is 50 dollars!!! Rajkapoor K LaUghTeR AccEleRatED , Just CHILL !! 0 October 13th, 2010 07:41 AM
Kraft foods Acquisition of Cadburys for $19.6 billion Kartik Raichura Company Profiles & News !! 0 January 20th, 2010 02:11 AM
 

Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (2 (permalink))
Kulin Choksi
koolin is an unknown quantity at this point
 
koolin
 
Awards Showcase
Status: Offline
Posts: 32
Join Date: Aug 2011
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - April 10th, 2012

I would like to call this acquisition more of a fear than power. If we go through the media reports i found one of the lines very interesting "At 27 million registered users on iOS alone, Instagram was increasingly positioning itself as a social network in its own right %u2014 not just a photo-sharing app. And it was clear that some users were doing more of the daily sharing actvities on Instagram rather than Facebook%u2019s all-in-one mobile apps, which had to be cluttered with nearly every feature of the desktop site" Till now noone of the social network sites have come close to competing with FB. Another point we can make out is that the money FB was making and will now receive after going public had to be spent for expansion. This was the right strategy but only time will tell.
Friends: (0)
Reply With Quote
The Following User Says Thank You to For This Useful Post:
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (3 (permalink))
Shreya Das
shreyadas has a spectacular aura aboutshreyadas has a spectacular aura aboutshreyadas has a spectacular aura about
 
shreyadas
Student of Bachelor of Engineering at RAJENDRA INSTITUTE OF MEDICAL SCIENCES
Dhanbad, Jharkhand
Management Paradise Member
 
Status: Offline
Posts: 880
Join Date: May 2011
Location: Dhanbad, Jharkhand
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - April 10th, 2012

Business Insider has come up with a very interesting case Instagram billion dollar valuation - Business Insider

The author says 1 billion may be an undervalued amount for the startup with 13 employees.


Help Others To Help Yourself !


How Can You Help? > Upload Notes, Projects, Solve Queries, Submit Articles, Scribble Blog and many more innovative Ideas in Your Mind Put it here
Friends: (0)
Reply With Quote
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (4 (permalink))
Anjali Khurana
anjalicutek is an unknown quantity at this point
 
anjalicutek
Student of BBA at DAV College
Amritsar, Punjab
Management Paradise Guru
 
Institute: DAV College
Status: Offline
Posts: 2,223
Join Date: Nov 2010
Location: Amritsar, Punjab
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - April 10th, 2012

Facebook had registered last years profit as 1 billion dollars. Purchasing a company for such an amount which was created only with 13 employees may not be the smartest decision.

Are we saying if facebook spent 1 billion $ on creating a new app and marketing it like instagram then it wouldnt be much more successful?

Something is fishy about this deal
Friends: (0)
Reply With Quote
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (5 (permalink))
Farhana Khan
farhanak.manage is an unknown quantity at this point
 
farhanak.manage
Student of Bachelor in Arts at ANJUMAN -I-ISLAM AKBAR PEERBJHOY COLLEGE OF EDUCATION
Mumbai, Maharashtra
 
Status: Offline
Posts: 77
Join Date: May 2011
Location: Mumbai, Maharashtra
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - April 10th, 2012

Facebook has filed for an IPO recently. They have soo much money and nothing better to do with their own product, so they are acquiring other popular products.

I use twitter and I hate that facebook acquired instagram. Just hope they dont spoil it like they spoilt facebook experience.
Friends: (0)
Reply With Quote
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (6 (permalink))
Ankita Gaba
ankitagaba is on a distinguished road
 
ankitagaba
Social Media Consultant at Management Paradise
 
Status: Offline
Posts: 41
Join Date: Mar 2009
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - April 11th, 2012

I think it was a very smart decision by Facebook. Instagram has loyalists. The users adore the tool and platform. Now it all depends on how Facebook leverages Instagram's reach and tool.
Friends: (0)
Reply With Quote
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (7 (permalink))
Shrusti Mathur
Shrusti is an unknown quantity at this point
 
Shrusti
Student of BBA at Mangalayatan University
Agra, Uttar Pradesh
 
Status: Offline
Posts: 198
Join Date: Dec 2010
Location: Agra, Uttar Pradesh
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - April 11th, 2012

Quote:
Originally Posted by ankitagaba View Post
I think it was a very smart decision by Facebook. Instagram has loyalists. The users adore the tool and platform. Now it all depends on how Facebook leverages Instagram's reach and tool.
Absolutely. I read that facebook's key feature is photo sharing and facebook has low mobile penetration and low revenues from mobile.

Instagram was a threat as a competitor to facebook and this acquisition is initially to evade that threat.

Unlike how google ignored facebook when orkut was dominant, Mark did not want to repeat this mistake.
Friends: (0)
Reply With Quote
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (8 (permalink))
Edwin Pol
cpacode is an unknown quantity at this point
 
cpacode
Status: Offline
Posts: 8
Join Date: Mar 2012
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - June 23rd, 2012

FB failed to develope similar project and they dont have good mobile integration. Good move.
Friends: (0)
Reply With Quote
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ?
Old
 (9 (permalink))
Priyanka Poojary
priyanka8290 is an unknown quantity at this point
 
priyanka8290
Student of BBI at THAKUR COLLEGE OF ENGINERING AND TECHNOLOGY
Mumbai, Maharashtra
 
Status: Offline
Posts: 10
Join Date: Sep 2009
Location: Mumbai, Maharashtra
Re: Why did Facebook Pay a billion dollars for its Instagram Acquisition ? - October 7th, 2013

instagram is the new growing trend
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
acquisition, billion, dollars, facebook, instagram, pay

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Login
Forgot Password?  New User?
  

» Ads





» Recent Threads

Solution manual on... ( 1 2 3)
Last post by Anshul Rastogi
22 Minutes Ago 10:01 PM
21 Replies
IS PART TIME MBA IS... ( 1 2 3... Last Page)
Last post by Joel Francis
1 Hour Ago 09:19 PM
39 Replies
Download The Expendables...
Last post by Yashwant Naik
2 Hours Ago 08:09 PM
0 Replies
Available Project...
Last post by Pramit Singh
2 Hours Ago 08:03 PM
1 Replies
CASE STUDY ON...
Last post by Pramit Singh
2 Hours Ago 08:01 PM
3 Replies
topics for 100 marks... ( 1 2 3)
Last post by Pramit Singh
2 Hours Ago 07:59 PM
28 Replies
Pest Analysis On Retail...
Last post by Pramit Singh
2 Hours Ago 07:56 PM
2 Replies
objectives and elements...
Last post by Vinod Gupta
2 Hours Ago 07:42 PM
1 Replies
DISADVANTAGES OF SALES...
Last post by Vinod Gupta
2 Hours Ago 07:41 PM
1 Replies
Distribution Strategy of...
Last post by Vinod Gupta
2 Hours Ago 07:39 PM
1 Replies
Download Most Important... ( 1 2 3... Last Page)
Last post by Vinod Gupta
2 Hours Ago 07:37 PM
31 Replies
List The TOP 20... ( 1 2 3)
Last post by Vinod Gupta
2 Hours Ago 07:36 PM
21 Replies
DEFINATIONS OF EVERY... ( 1 2 3... Last Page)
Last post by Reena Dapat
2 Hours Ago 07:24 PM
64 Replies
Organisational Structure...
Last post by Reena Dapat
3 Hours Ago 07:22 PM
1 Replies
"shudh"...
Last post by Reena Dapat
3 Hours Ago 07:20 PM
1 Replies

» Projects Helpline

topics related to 100...
Last post by Dharmik Moni
4 Hours Ago 05:33 PM
Retail Management Notes
Last post by Bhautik Kawa
1 Week Ago 10:56 AM
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in