Forbes Likens Instagram Purchase To Myspace Deal

theodp writes "It's not that Chunka Mui isn't impressed by the smarts of Instagram CEO and Forbes cover boy Kevin Systrom. Still, Mui can't help but ask, 'How Long Before Facebook Writes Off Its $1B Purchase of Instagram?' While pundits and analysts have almost universally praised Facebook's acquisition of Instagram, Mui is less-than-impressed by Instagram's 80 million unmonetized mobile users. 'My prediction,' writes Mui, 'is that we'll look back on the acquisition as a bust — much in the same way we now view News Corp.'s purchase of Myspace, AOL's purchase of Bebo, and Excite@Home's purchase of Blue Mountain Arts.' Ouch. Mui notes that according to a recent SEC filing, Facebook could ditch the deal by paying a $200 million fee if regulators block the merger or if Facebook terminates the agreement after Dec. 10, 2012."

Like any sane person...

[Anonymous Coward]

I said this back when the deal happened.

$1B for a service used by self-absorbed 'hipsters' to take photos of food and who pay nothing for it? Nuts!

In case you don't know the popular social media

[Schwhat]

The following explains what the popular social media currently are and what they do differently: http://www.designverb.com/wp-content/images/2012/04/social_media_donut.jpg [designverb.com]

Re:Like any sane person...

[Bill, Shooter of Bul]

What? Hipsters don't use instagram. They have phones that you probably haven't heard of and takes pictures you wouldn't understand.

Re:Nope.

[Quiet_Desperation]

Vat grown bacon is just around the corner. Pigs are expendable.