Facebook acqhires/acquires Instagram for $1 billion (No, really)

Earlier today, I said on Twitter:

This is what I was referring to:

Mapquest – AOL acquired Mapquest for $1.1B in December of 1999.

GeoCities – acquired by Yahoo! in May 1999 for $3.56 billion

Netscape – acquired by AOL in November 1998 for $4.2 billion.

Broadcast.com – acquired by Yahoo! in July 1999 for $5.7 billion.

Excite – acquired by @Home in January 1999 for $6.7B

Lycos – acquired by Terra Networks for $12.5B in May 2000.

I’m sure Facebook can use the technology and popularity of Instagram to shore up its mobile business. But at a price of $1 billion, I don’t believe it’s worth it. Indeed, I believe it sends a very negative message to would-be investors in Facebook about what they will be doing with the money raised in their upcoming IPO.

There are many people writing why Facebook made a good decision in purchasing a company with a dozen or so employees and no revenues for $1 billion.

I wonder if they’ll be investing their IRA funds in Facebook in a few weeks?