On Monday, Facebook announced it was acquiring mobile photo application Instagram for $1 billion. You read that right. $1 billion.
Facebook’s interest in Instagram isn’t too surprising. After all, Facebook has a history of acquiring digital startups like group texting service Beluga, location-based social network Gowalla, and mobile application platform Snaptu. Also, considering Facebook’s impending IPO, proving the company can be a major player when it comes to mergers and acquisitions will inevitably charm potential investors. (Although, according to CEO Mark Zuckerberg, a purchase of this magnitude is not indicative of Facebook’s future business tactics. Sure, Zuck. Whatever you say.) Finally, Facebook undoubtedly viewed Instagram as its main competitor in the realm of online photo sharing. Better to buy than have to compete, right?
What IS surprising is Instagram’s price tag. To put this in perspective, we’ve decided to call in a favor to our Sotheby’s rep. and conduct some comparative analysis that illustrates what a huge deal this is.
Hedge your bets, as we count down the Top 11 Things That Are Worth Less Than Instagram.
- The Heart of the Ocean necklace from Titanic: Replica created for Celine Dion by jeweler Garrard and Co. valued at $3.5 million in 1998 (link).
- Sue the Tyrannosaurus Rex: Bought by the Field Museum in 1997 for $8.36 million (link).
- MySpace: Purchased in 2011 for $35 million (link).
- Kim Kardashian: Net worth in 2011 estimated at $35 million (link).
- Jay-Z: Net worth estimated at $450 million in 2010 (link).
- Pinterest: Estimated to be worth nearly $500 million in March 2012 (link).
- The Country of Samoa: Had an estimated nominal Gross Domestic Product of $600 million in 2011 (link).
- The Chicago Bulls: Valued at $600 million by Forbes prior to the 2012 season (link).
- Mega Millions’ Biggest Jackpot in History: $656 million in March 2012 (link).
- The Chicago Tribune Company: Valued at $920 million in 2011 (link).
- John Hancock Tower: Sold for $930 million in 2010 (link).