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Why $1 billion for Instagram is a good deal

Facebook just announced that has adquired Instagram for about 1 billion dollar, and the first reactions in social networks has appeared. Most comments argue that $1 billion valuation is too high, and try to show several metrics such as $0 revenues, or $83 million per employee. But we can look at several other directions that points out that $1 billion for adquiring Instagram can be a really good deal for Facebook. First of all, look at photo sharing numbers at Facebook: 136.000 photos uploaded per minute, that’s over 200 million photos uploaded per day, and a total of 140 billion photos uploaded to Facebook. That’s really a lot of photographies in Facebook, and the reality is that Facebook Photos sucks. So uploading and sharing photos is one of the keys of Facebook’s success and one feature that engage users and Facebook has not been really designed to upload and share photos in a proper manner, and that’s why they needed to make an adquisition in the photo sharing segment. And when you look for great photo s...
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