ynet - Jewish Scene

Monday, April 9, 2012

Facebook Buys Instagram For $1 Billion. Smart Arbitrage. - Forbes

Facebook Buys Instagram For $1 Billion. Smart Arbitrage. - Forbes: "Thrive, Benchmark and Greylock at a reported $500 million valuation. Quick paydirt for them. The fact that Facebook would pay 2x what the company was supposedly worth within a week’s time suggests this is a defensive move against Google or Twitter or Microsoft buying Instagram. Facebook has the money (almost $4 billion in cash on hand as of December 2011), and certainly isn’t desperate for more users, most if not all of whom are already on Facebook (which greatly influences the price-per-new-active-user Facebook is paying. See crude math below.)"

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