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April 11, 2012

Acquisitions by the Numbers

Andy Baio doesn’t think the $1-billion price tag on Instagram is so crazy when you put it into context.

If we look strictly at the acquisition cost per user, Facebook got a relative deal with the Instagram purchase, paying roughly $28 for each of Instagram’s 35 million users. (The median cost across all the acquisitions is about $92 per user.)

(Side note: In the table of acquisition prices, he italicizes “rumoured” amounts. Among those is Upcoming.org, which is “rumoured” at $1 million. It’s just funny because he’s the guy who sold it.)