Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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The new that Facebook was buying Instagram for $1 billion was further confirmation to me that we are beginning to reach a bubble stage in some parts of the Internet and particularly apps investing world. I actually downloaded Instagram some time ago, and found its ability to manipulate photographs very quickly to be lots of fun. You then essentially load them up to a timeline, and its pretty much Twitter, but for photos.
Is it worth $1 billion? I don’t think so, but I guess if you have a company that is about to be worth $100 billion, namely Facebook, and you may have other competitors and you are very weak in the mobile enviroment, then a mobile application, specialising in photographs, might well address your weaknesses and the value for money. Quite frankly, I don’t see the business model but then I don’t think Facebook is worth $100 billion either and it might well just be a defensive purchase to buy something for more than it is worth, simply to stop it falling into the hands of a competitor and possibly costing you market share or market price at a later stage.
Posted by Michael de Broglio on Tuesday 01-May-12
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Comments
Daniela said:
on Friday 04-May-12 01:34 PM
After moving to Android recently, the very first application I installed was Instagram, it is simply amazing and so much fun. Naturally I upload to Twitter and am not really so interested in the Instagram social side. Just enjoy the picture editing bit.
cherise said:
on Thursday 03-May-12 10:18 AM
Lots of peoples new thing on fcaebook lately is too edit all their pictures and then upload them on facebook. ecspecially enhancing hair colour lol - I noticed with the ladies.
SoI feel this was smart of Facebbok to recognise their trends and keep up to date with them by introducing the instagram.
Angelique said:
on Wednesday 02-May-12 02:25 PM
Instagram is could be facebooks competition - well before they bought it! So one can see why facebook bought it. I think instagram was growing and fast and facebook ofcourse not have that. As an application on facebook all facebook users can enjoy and Im sure it will allow more people to log in more often.
Simone said:
on Wednesday 02-May-12 09:54 AM
I actually think this would be great if Facebook added a feature to when you upload photos and you can then edit it with Instagram. I'm pretty sure all the Faacebook users would enjoy this.
Alexis said:
on Wednesday 02-May-12 08:41 AM
It makes sense to snatch something up for way more than it is worth than to let another company buy it.
Liesl said:
on Wednesday 02-May-12 08:40 AM
To speak business language in terms of a business's true value in rand and cent would be to punch above my weight, that I leave to the businessmen but society's dependence on technology seems to be growing like a runaway train. A simple example will be how lost I feel when I can't use my cell phone or I have forgotten it at home.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
