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April 9, 2012

I see three reasons for the Instagram acquisition:

1. Talent
2. Idea
3. Product

If 1 or 2 are the primary reason, the product dies.

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17 Replies

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Last reply was April 10, 2012
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  1. @jondavidjohn
    View April 9, 2012

    @alexkingorg possible 4th, data/content? We learn anything about Facebook’s acquisition strategy from the gowalla deal?

    • @alexkingorgreplied:
      View April 9, 2012

      @jondavidjohn The Gowalla deal was a VC orchestrated talent acquisition. Some other moves (Sofa, etc.) have been similar talent plays.

      • @jondavidjohnreplied:
        View April 9, 2012

        @alexkingorg you think the price tag rules out a purely talent based move?

        • @alexkingorgreplied:
          View April 9, 2012

          @jondavidjohn Price is driven by the market, not planned usage. I expect there is more value to Facebook in Instagram than just the team.

  2. @rawker
    View April 9, 2012

    @alexkingorg your forgot users, and competition. Facebook grabs up a ton of picture users. And now owns one of its biggest photo rivals

  3. @PaulLomax
    View April 9, 2012

    @alexkingorg They only have 13 employees, so there can’t be /that/ much of number 1…!

    • @alexkingorgreplied:
      View April 9, 2012

      @PaulLomax I actually think the small team size (and what they’ve done) makes the opposite argument.

      • @PaulLomaxreplied:
        View April 9, 2012

        @alexkingorg They’ll now be part of a HUGE organisation. As much as they’ll want to keep it separate, they won’t be able to…

  4. @BillGlover
    View April 9, 2012

    I see three reasons for the Instagram acquisition:… http://t.co/r2KVLnbx

  5. Donnie Berkholz
    View April 9, 2012

    4. Data exhaust?

  6. Alex King
    View April 10, 2012

    and perhaps: 5. Competition

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Alex King, Web Developer

I passed away in September 2015. I was an independent web developer based in Denver, CO. I was an original contributor to WordPress, I created the Share Icon, and I founded Crowd Favorite. Read more…

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