Instagram says “yes” to $1 billion from Facebook
I hope the folks over at Groupon have a learned a lesson today: if someone offers you a billion dollars there is only one thing to say: “yes”.**
I’m sure we’ll hear more about why Facebook decided that Instagram was worth $1 billion to them, maybe they really, really liked the recently launched Android app, though I doubt that was it.
Executives pay very large sums of money usually for one reason: fear. Maybe it is fear that the company in question will be a major competitor. Maybe it is that one of their competitors will buy the company first. I’m sure we’ll hear soon enough.
But in the meantime, all that cash will now go into the hands of a few folks at Instagram. Let’s hope it is put to good use rather than spent to keep the campaign of Newt Gingrich alive.
One thing for sure, real estate values in the Bay Area are not going to crash anytime soon based on all this cash being thrown about.
** Groupon was offered by $6 billion by Google and, of course, said “no”. They will be working very hard, for a long time, to make that offer seem like one that could be turned down.