Really good discussion on Hacker News as well.
I remember the outrage when Zuckerberg bought Insta for $1bn. The Internet was filled with bubble-theorist.
Facebook has made a home run with Instagram: acquired a younger demographic, a platform with IG Stories to fend off snapchat and now IGTV to challenge YouTube’s dominance. The private valuation is ridiculously high but that’s neither here nor there given it’s unlikely to be spun off anytime soon, if ever.
Yes. Very unlikely it’ll be split off, especially given some of the internal changes at Instagram.
Instagram is pushing SNAP back so it’s value is sometimes underrated. FB is interesting though and the other big whale in Facebook is WhatsApp which will push FB value up when it’s monetised.
It’ll be interesting to see what happens to SNAP and Twitter over the next few years…
Interesting nuance is that this valuation could likely only have been achieved within the FB ecosystem as a connected part of their data and ad strategy. Had it stayed independent I really don’t see this.
Similar bargain story would be Marvel to Disney, although the former probably had a much better chance of the same success as an independent than Instagram.