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Facebook Buys Instagram to Gain Revenues from Mobile Segment

No doubt Facebook has overpaid for acquisition of Instagram by buying it out for $1 Billion. However it is a well thought out marriage as facebook has not been making any revenue from mobile segment and Instagram caters exclusively for mobile segment and its app is a craze among youth.

When a business sees synergy, it may overpay for a brand because the acquyirer knows that dividends of the marriage are going to be hefty or may be non linear as instagram will get a Facebook makeover soon.

Most Visited Stocks - Click to Visit Link

 
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