Facebook’s $1 billion acquisition of Instagram has excited the internets. Again. I opined on this last year and I cleave to it now: the dotcom bubble still exists. As the August body of record in the UK The Metro reminded me this morning, this valuation of Instagram makes it worth more than the New York Times (I won’t link to the Metro on principle because of this, so you’ll have to make do).
A further note: Instagram has no income stream from either advertising or subscription fees and employs a total of 12 or 13 people, depending on which source you choose to believe.
In a world where financial reality is still yet to truly bite, despite 3 years of colossal warnings written in huge pink neon letters in the supplementary pages of the UK, US, Japanese and European budgets, the only industry apparently stupider than the finance industry is the tech industry.
This bubble is about 5 or 6 years overdue to pop. Catch you on the flipside when, hopefully, sanity will have come to prevail.