The big news on the net this week that has got everyone talking is Instagram’s acquisition by Facebook for the absurd amount of $1 billion. Why absurd? Because Instagram has zero revenue, so how can anyone say that the company is worth $1 billion? It’s as if Mark Zuckerberg suddenly felt like buying something. Other people buy a puppy or a sports car. Zuckerberg drops a billion on a company with no revenue, and in the process makes everyone at Instagram millionaires, including one employee who joined the company only 3 weeks ago.
I have recently started using Instagram myself, when I bought an iPhone last month, so I sincerely hope that Facebook doesn’t ruin my new favourite site with ads, games and other crap that normally clogs up Facebook. But you have to wonder how Instagram managed such a stunning success in such a short space of time (17 months). Has any other website managed to pull off a one billion dollar coup in a shorter space of time? I’m pretty sure the answer is no.
Our infographic today shows Instagram’s beginnings back in March 2010 and its astonishing rise to where it is today. It just goes to show that indeed anything is possible on the Internet.
What do you think? Is the one billion dollar valuation justifiable? Or is it just silly numbers plucked out of the sky simply to close a deal and wow everyone? Are you excited or afraid that Instagram may changed by Facebook?
Click on the infographic below for a larger version
Infographic Source: Visual.ly