It's worth that only because Google can easily pay it. Google's net income was $... | Hacker News

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cube13 on April 10, 2012 | parent | context | favorite | on: Instagram is "worth" more than the New York Times

It's worth that only because Google can easily pay it.

Google's net income was $9 billion in 2011(http://en.wikipedia.org/wiki/Google). According to Facebook's S-1 filing in February 2012, Facebook's net income for 2011 was... $1 billion(http://www.sec.gov/Archives/edgar/data/1326801/0001193125120...).

The real question still remains: Why is Instagram worth that much to Facebook?

oh_sigh on April 10, 2012 [–]

Because of the huge user base! (Of course, 95% of instagram users are already on facebook, but imagine if instagram uploaded your photos by default to G+)

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