If as in the FAQ, that topics about business (computer industry) is allowed here, I'd like to find out why Instagram can be so valuable, that it is acquired for $1 billion dollars (USD). To put it simply, isn't it just a photo enhancement app (such as making a photo vintage look), plus sharing those photos on Facebook? That's because in contrast, PlayFish had superb Facebook games, and many of them, and are so much more sophisticated (such as Restaurant City and Pet Society). And PlayFish was merely acquired for $400 million. Some companies such as RockYou, had the number one app on Facebook, but wasn't even acquired for a low price like $200 million. And now just a photo filter app and sharing photos, and it is a business considered to be worth a billion dollars. Why is that?
closed as off topic by ChrisF♦ Apr 12 '12 at 20:50
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You are forgetting about the user base. Instagram has over 27 million users that Facebook wants. Software is worth money, users are worth more. Your other examples are not worth as much because there were many million less users on those services.