[hurds]

We all now know Facebook intends to buy Instagram.

Is this post about getting instagram on BBs? Nope.

FB has offered 1 billion for instagram. An app. That has no revenues.

RIMs market cap is less that 6 billion right now. I believe they generated 4 billion in revenue the last year.

I don't know what others think but to me this seems like a joke.

[dbmalloy]

I am missing what point you are making.....

[EveryApp Mobile]

I believe either op is saying that the price paid for instagram was too much or RIM is worthless.

[kemj]

I believe either op is saying that the price paid for instagram was too much or RIM is perceived as worthless.

Made a correction there.

It is no secret to anyone that RIM is miserably underrated.

[EveryApp Mobile]

Made a correction there.

It is no secret to anyone that RIM is miserably underrated.

Good point but the OP understanding might be different.

[hurds]

Good point but the OP understanding might be different.

I just don't understand how instagram is worth 1 billion and RIM is only worth 6 billion. Time will tell what their true values are.

[kemj]

I just don't understand how instagram is worth 1 billion and RIM is only worth 6 billion. Time will tell what their true values are.

I cant understand that either, but oh well... I really think RIMM should be taken private.

[addicted44]

I just don't understand how instagram is worth 1 billion and RIM is only worth 6 billion. Time will tell what their true values are.

The value of Instagram is derived from the following factors:
1) It is growing rapidly.
2) It was a major competitive threat to Facebook since it created a photo sharing structure (which is one of FB's stickiest features) and also created a competitive threat.
3) It's designers seemed to understand mobile design, which Facebook's designers clearly don't.
4) Twitter was about to buy it.

Basically, Instagram wasn't valued as much for its ability to generate profits, but rather as something that could add tremendous value to Facebook as well as something that could become a major competitive threat to Facebook.

RIM on the other hand, has declining profits, and declining cash. Investors don't expect much from RIM if it continues along this trajectory (it is unlikely to continue along this trajectory and must almost certainly improve provided a decently executed BB10 launch, but there is no tangible evidence to rely on for this, so investors are going for the safer bet).

RIM individually has a ton of value. For example, BBM itself should be worth a lot more than Instagram. And their BIS services can be of great value especially considering their strength in emerging markets, but these are all tied to the fate of BB hardware.

[hurds]

The value of Instagram is derived from the following factors:
1) It is growing rapidly.
2) It was a major competitive threat to Facebook since it created a photo sharing structure (which is one of FB's stickiest features) and also created a competitive threat.
3) It's designers seemed to understand mobile design, which Facebook's designers clearly don't.
4) Twitter was about to buy it.

Basically, Instagram wasn't valued as much for its ability to generate profits, but rather as something that could add tremendous value to Facebook as well as something that could become a major competitive threat to Facebook.

RIM on the other hand, has declining profits, and declining cash. Investors don't expect much from RIM if it continues along this trajectory (it is unlikely to continue along this trajectory and must almost certainly improve provided a decently executed BB10 launch, but there is no tangible evidence to rely on for this, so investors are going for the safer bet).

RIM individually has a ton of value. For example, BBM itself should be worth a lot more than Instagram. And their BIS services can be of great value especially considering their strength in emerging markets, but these are all tied to the fate of BB hardware.

You make great points and I agree with you. Althought I think they did increase cash. To me it still makes absolutely no sense the dollar values that these companies currently have.

BBM alone to me would be worth more than instagram. In fact, RIM should add a instagram-type service to BBM.

[belfastdispatcher]

I am a firm believer in keeping photos the way they come out of the camera, no editing whatsoever.

Instagram has �0.00 value to me.

[addicted44]

I am a firm believer in keeping photos the way they come out of the camera, no editing whatsoever.

Instagram has �0.00 value to me.

Instagram stores the original photo too.

But in general I agree that I don't like the filters it provides, which is why I don't use it. But a substantial number do, so your and my usage patterns are barely relevant in the larger scheme of things.