> so if Instagram is worth $1B to Facebook, ZNGA must be worth somewhere north of $2.5B, its current enterprise value.
This doesn't make sense. Facebook does not own stock market, neither they are some sort of a measurement for other transactions.
Zuck bought it because it was last moment to spend money they didnt have and clearly it was a threat to FB userbase (but sooner or later another Instagram will come up that FB cannot afford). Further Instagram deal was a scam [1] that hopefully will get investigated by Sec (?), for all FB shareholders' sake.
I was a bit tongue-in-cheek. I don't think Instagram is worth anywhere near even $100M. They have $0 in revenues. I think if they were to try to self-sustain themselves from their own revenues, they would have gone under, but what do I know.
That being said, ZNGA makes roughly $1B in revenues, which gives them 2-3x current revenues. I perceive that as being cheap, but I could very well be wrong. I'm just placing my bets, and if they don't turn out, then I'll sell at a loss.
This doesn't make sense. Facebook does not own stock market, neither they are some sort of a measurement for other transactions.
Zuck bought it because it was last moment to spend money they didnt have and clearly it was a threat to FB userbase (but sooner or later another Instagram will come up that FB cannot afford). Further Instagram deal was a scam [1] that hopefully will get investigated by Sec (?), for all FB shareholders' sake.
[1] http://www.donnaklinenow.com/investigation/instagram-scam