Bought by Facebook for $1 billion, Instagram now worth a whopping $35 billion

[Jos]

Facebook’s $1 billion acquisition of Instagram in 2012 may have seemed shocking at the time -- and indeed, it sparked talk of a new tech bubble. But as it turns out the deal is now looking like quite a bargain for the social network. Not only has it kept it at the forefront of photo sharing, a new valuation estimate for the service puts its worth at a whopping $35 billion.

The new estimate comes courtesy of Citigroup, which previously had the company valued at an already impressive $19 billion. The increased value is related to Instagram's announcement last week that it now has over 300 million active monthly users and growing faster than expected.

While Citi's analysts acknowledge the $35 billion valuation is speculative at this point and dependent on several factors, their optimism is based on the fact Instagram is undermonetized.  Citigroup believes that Instagram could eventually contribute around $2 billion in annual revenue for Facebook.

The photo sharing app was recently updated with new filters and features, while today the company took steps towards cleaning up spam accounts. It’s said Justin Bieber lost 3.5 million ‘believers’ in the purge. Oh, the humanity.

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https://www.techspot.com/news/59210-instagram-now-worth-35-billion.html

 

[yRaz]

I see another dotcom bubble coming and I hope it starts with facebook

 

[stewi0001]

I see another dotcom bubble coming and I hope it starts with facebook

will it be like a zit or a pinata?

 

[yRaz]

will it be like a zit or a pinata?

It will be like one of those times where you think you have to fart in public so you let it rip and accidentally **** yourself.

 

[cmbjive]

The new estimate comes courtesy of Citigroup, which previously had the company valued at an already impressive $19 billion.

So...why would I trust the numbers of one of the primary culprits of the financial crisis?

While Citi's analysts acknowledge the $35 billion valuation is speculative at this point and dependent on several factors, their optimism is based on the fact Instagram is undermonetized.

Yeah, what happened the last time Citi speculated?

 

[mizkitty]

Obviously Citigroup has a vested interest in making Instagram's valuation as high as possible...

 

[RzmmDX]

Well, assuming if everyone on EARTH was using this app.

And somehow ads per person a day amounts to $0.01.

Then this is a totally legit valuation!

 

[Rippleman]

I see another dotcom bubble coming and I hope it starts with facebook

could you just simply not use it? I don't use many things everyday that I don't like. With practice, I think everyone can learn to do it.

 

[yRaz]

could you just simply not use it? I don't use many things everyday that I don't like. With practice, I think everyone can learn to do it.

My problem with facebook isn't the social networking aspect of it, it's that they're frequently buying seemingly worthless companies for billions of dollars. On top of that they are valued at over $200 billion dollars. For awhile people thought that facebook was going to be the first trillion dollar company.

 

[Guest]

All is well inside the capitalist crackhouse...nevermind the mounds of trash & excrement in every corner.

 

[Mister_K]

could you just simply not use it? I don't use many things everyday that I don't like. With practice, I think everyone can learn to do it.

My problem with facebook isn't the social networking aspect of it, it's that they're frequently buying seemingly worthless companies for billions of dollars. On top of that they are valued at over $200 billion dollars. For awhile people thought that facebook was going to be the first trillion dollar company.

are you implying that Instagram is worthless?

 

[yRaz]

are you implying that Instagram is worthless?

that isn't what I said at all but, yes, I do think instagram is worthless. Especially when my friends are too busy uploading pictures from their phone to actually enjoy what they were taking pictures of.

 

[Misagt]

could you just simply not use it? I don't use many things everyday that I don't like. With practice, I think everyone can learn to do it.

My problem with facebook isn't the social networking aspect of it, it's that they're frequently buying seemingly worthless companies for billions of dollars. On top of that they are valued at over $200 billion dollars. For awhile people thought that facebook was going to be the first trillion dollar company.

It's all shadow money, most of it isn't there. If you look at the companies Facebook has bought. It's usually a bit of cash and a ton of stock. That stock most likely has restrictions on when it can be sold. Basically, Facebook buys company gets most of the value from locking these people into owning their stock for a long period of time. This keeps the stock up and by buying all these companies it gives the illusion of growth, it's all smoke and mirrors.