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Hi Stil,
I’m not rebutting the analysis so much as pointing out that it isn’t relevant. Those justifying the valuation are cherry picking stats to suit their argument.
Where I think the possible value is for Facebook in the Instagram purchase is in building a portfolio of mobile enabled apps that plug into a FB back end which add even more grist to the massive data mill they’ve developed.
I still think though they’ve overpaid thanks to the curse of FOMO, I’d be fascinated to hear how much the various Silicon Valley insiders drove the various deals that surrounded this transaction.

The biggest media story last week was the billion-dollar purchase of photo-sharing service Instagram by Facebook — and I ended up talking about it on ABC Radio National’s Media Report on Friday.
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