Facebook buys a company with no revenue (yes no revenue---this is not a case of revenue, but no profit yet, but literally no revenue even) for $1 billion: LINK
The value of Instagram isn't in the revenue, but in the data about what people look at and photograph being dumped into their data set. The value of increasing that data set exceeds a billion dollars in advertising revenue over the long term or they wouldn't have paid that much.
The value of Instagram isn't in the revenue, but in the data about what people look at and photograph being dumped into their data set. The value of increasing that data set exceeds a billion dollars in advertising revenue over the long term or they wouldn't have paid that much.
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ReplyDeleteThat's a good point you make, thanks :)
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