What Was Facebook Thinking?

[zengrifter]

Just in case you haven’t heard: Facebook is paying $1 billion to acquire photo sharing app darling,
Instagram. Huh? How could Zuckerberg possibly think it’s worth anywhere near that much?
All Things Digital reported that assorted VCs assessed Instagram at $500 million before funding it with $50 million in venture capital.

“

If you find it odd that in one room Instagram was negotiating a billion dollar sale, while in another closing a funding deal, you’re not alone,” writes Ron Miller at Fierce Content.But it’s not half as odd as Facebook paying twice as much for Instagram as the companies providing that funding think it’s worth. Was somebody else bidding against Facebook?

more- What Was Facebook Thinking? Catalyst House Blog

[DDutton]

Okay, here is an emerging theory about the seemingly senseless OTT valuation - Instagram is getting some not insignificant traction in China via that other Chinese social network - this affords two big opportunities -
1) Opens China up further to Facebook, and,
2) The CIA spooks behind Facebook gain further intel opportunities in China.