Arab Today, arab today facebook buys instagram for 1bn
Last Updated : GMT 17:13:46
Arab Today, arab today
Arab Today, arab today

Signs of another tech bubble

Facebook buys Instagram for $1bn

Arab Today, arab today

Arab Today, arab today Facebook buys Instagram for $1bn

Facebook is paying $76.9m per Instagram employee
Dubai- Arabstoday

Facebook is paying $76.9m per Instagram employee When Facebook announced on Monday that it was to acquire Instagram, a photo sharing application that employs just 13 people, it was bound to set some tongues wagging about the possibility of another tech bubble.
Not that the deal is a huge surprise. Instagram — founded in 2010 — may be a small company, but its audience is estimated at over 30 million, all potential customers for Facebook as it tries to monetise the social network model.
\"What they bought with Instagram was a photo app with high brand recognition and an enormous audience,\" said Ray Valdes, a research director at Gartner Inc.
Chris N. Fernando, managing editor of PC Magazine, told Gulf News that the acquisition does not point to a tech bubble, it marks the evolution and revolution of social media and the efforts to cash in on what is essentially a free service.
Facebook is looking to increase its revenue stream from mobile, Fernando said, and the acquisition is one step towards doing that. The company already receives a significant portion of its traffic from mobile, but it has not been able to make as much money through this platform.
But it was a high price to pay, Fernando says. To put the number into perspective, Yahoo bought Flickr in 2005 for $35 million (Dh128.53 million) less than five years after the dot.com bubble burst.
Given Instagram\'s employee base of 13, Facebook is paying $76.9 million per person for a company that has no publicly disclosed source of revenue. Facebook may seek an initial public offering valuation of as high as $100 billion, people with knowledge of the plans have said. At that valuation, Facebook would be worth $31.3 million per each of its 3,200 employees at the end of 2011.
\"I think buying Instagram for a billion dollars is insanity,\" Fernando said.
\"It may be worth $500 million. Facebook is unlikely to make the billion dollars back it used to purchase Instagram, but it will allow Facebook to be competitive in the photo sharing realm,\" he added.
Rebecca Lieb, an analyst at Altimeter Group LLC, agreed that owning Instagram may help the social networking giant to attract handset users and advertisers who target them, but it is difficult to see the tiny company\'s business model.
Zynga, for example, makes money selling access to of its games, which Facebook advertises to its hundreds of millions of members. Instagram has none of that.
But what it does have is popularity, Fernando said. The company has grown from five to 30 million users in the last 10 months and last week unveiled apps on the Android platform. It has attracted one million new users in just one day.
He said that Facebook, which already has integration with the photo sharing app, has just bought the competition to gain mobile and other technology. The purchase would also be perhaps a way to block arch-enemy Pinterest, a content sharing service that allows members to \"pin\" images, videos and other objects to their pin-board. The deal marks the first time Facebook has acquired a product and company with so many users, Chief Executive Officer Mark Zuckerberg wrote on his profile page. He also said he plans to let Instagram remain independent.
\"We need to be mindful about keeping and building on Instagram\'s strengths and features rather than just trying to integrate everything into Facebook,\" Zuckerberg said.
\"Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.\"
But is this likely to be the first in a number of big-ticket acquisitions for Facebook over the coming years? Lieb thinks not.
\"Facebook is not known for big acquisitions and I think this will probably be its first and last one,\" she said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today facebook buys instagram for 1bn Arab Today, arab today facebook buys instagram for 1bn

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Air raid kills eight women, child

GMT 06:42 2017 Friday ,17 February

Air raid kills eight women, child
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally

GMT 08:45 2017 Thursday ,16 February

Hanjin saga reveals S.Korea corporate governance flaws

GMT 09:40 2017 Wednesday ,15 February

Heineken profits drained in 2016 by currency turmoil

GMT 09:10 2017 Tuesday ,14 February

Sharjah Chamber Eyes Strong Economic Ties with Belgium

GMT 08:23 2017 Tuesday ,14 February

Toshiba dives on shock loss-reporting delay

GMT 08:18 2017 Tuesday ,14 February

Banker-financier Mnuchin sworn in as US Treasury chief

GMT 09:14 2017 Monday ,13 February

Algeria buckles up for homegrown auto drive
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 15:16 2017 Sunday ,19 February

Apple to start India operations with iPhone SE

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday