If you look at how much Facebook paid for Instagram on a per user basis, you can see that it got a very good deal, says Andy Baio at Wired.
Baio, who has built a few startups in his day, compiled data on big acquisitions over the last ten years to argue that Instagram is not a sign that we’re in another tech bubble. As you can see, the per user price Facebook paid is cheap compared to other big acquisitions.
Why $1 Billion Is A Good Price For Instagram
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