Facebook acquired Instagram today for $1 billion in cash in stock. You can’t blame them for selling.
I’d been thinking through my thoughts on it all day. This is the second delightful social network that Facebook has acquired in the past few months. The first didn’t end so well.
Then I read Kyle’s take on it:
What’s sad is that a company that created the best way to share photos, a unique network where what people are doing is communicated entirely through photos, and has 30 million very loyal and very active customers, couldn’t figure out a way to make enough money to sustain the business and grow it into what they wanted it to be.
I love that technology is driving business today. The problem is, we’ve gone too far to the other end of the spectrum and forgotten that a business must charge a fair amount for their products and have an end game to survive.
Not everyone can be acquired. Sometimes we have to build a sustainable business. Unfortunately, we’re inspiring young entrepreneurs to do the opposite.
Again, I can’t blame them. I’d walk away with $400 million any day.