Exactly. Beyond everyone's need to rationalize why Facebook paid that much for Instagram, it's clear that Instagram is worth $1B to Facebook, because that's what they paid.
The relevant question is not "what is Instagram worth" but rather "what should it be worth." That is, we already know that Facebook values Instagram at $1B; the question is whether that valuation makes sense.
But "what should it be worth" can be debated until you're blue in the face and still have no real outcome. What Facebook paid is a fact, not speculation.
For all you know, Google is kicking itself for not making a $2B offer to them, because Google Plus could use all the help it can get.
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Exactly. Beyond everyone's need to rationalize why Facebook paid that much for Instagram, it's clear that Instagram is worth $1B to Facebook, because that's what they paid.
The relevant question is not "what is Instagram worth" but rather "what should it be worth." That is, we already know that Facebook values Instagram at $1B; the question is whether that valuation makes sense.
But "what should it be worth" can be debated until you're blue in the face and still have no real outcome. What Facebook paid is a fact, not speculation.
For all you know, Google is kicking itself for not making a $2B offer to them, because Google Plus could use all the help it can get.