I was in the Bay Area yesterday, the big news was that Instagram was acquired by Facebook for $1B. The same day, I went to visit the Box.com office. While visiting the Box office, I couldn’t help but think how vastly different Box and Instagram are as companies. This post is not about if one startup is better than the other, but it does put the Instagram acquisition into perspective.
Instagram = $33/user
Box = $5500/user – $450 revenue/user = $5050/user
It’s a bargain from that perspective. I guess user data and potential ad-recipients are hot, lets just hope it’s not a bubble. Even Facebook’s $100 Billion seems a bit skeptical.