|
I have read two very serious analyses of the purchase.
The best reason given for the crazy price of the purchase is that Facebook is trying to stifle, by eating, any competition to its' "sharing mantra."
The real problem for Facebook is that all those apps on Android and Apple that share stuff will now be looking for Billions for themselves.
An interesting side to this is that the 30 Million folks that were FREE subscribers to Instagram seemed to have as a part of their intent the idea of some Privacy, of a more cloistered, smaller group than the whole known Universe which is what Facebook is all about. As one pundit said, Mark Z has said that Instagram can remain separate and not have everything splashed onto Facebook unless the subscribers want otherwise, but then Mark Z has been known to change his mind on occasion.
I don't belong to Facebook as myself. I do have some pseudos there so I can look around on occasion.
Instagram is a dot com bubble. Never made any money. Less than 2 years old. Subscription is free. On the plus side, the picture software is very smooth, better than Facebook's they say, but is essentially limited to gimmicks which kids love. [free, simple, cutesy, sort of an "in group", did I say free, perfect for kids]
The only other program Instagram has beat out is a program that charged for its services. Can you believe it? Charged!
Definitely Dot.Com Bubble.
|