When you run a business and want to beat your competition, you try to provide a better service and reach more customers.
Facebook does it differently. They smother the competition under a dump truck cascade of cash.
Yep. Instagram.
The Zuck wanted Facebook Camera to dominate, but there was already an incumbent superstar.
So the Zuck did what the Zuck could do -- instead of crushing the competition, he became the competition via a mountain of money.
Negotiations
The Instagram boys knew Facebook was overflowing with coin.
So when Zuck came calling, they put their collective pinkies to their collective lips, paused, and then whispered the biggest number they could imagine: $2 billion.
Facebook countered with half that.
Yes, $1 billion. A one followed by a nine zeros.
It's like Facebook's helmsman fell asleep at the zero key.
But the deal was inked, and a predictably critical media marched in to mock Facebook's lack of restraint.
And yeah, you have to admit, Zuck's move was a little extravagant -- but it was also a gesture showing just how dominant Facebook is willing to be.
Self-competition
For now, both apps will remain.
But with the acquisition, Facebook Camera now only competes against itself. I.e., no matter where the money flies, it always lands on Facebook's lawn.
For customers, it's like Brokeback Mountain with Nicolas Cage in both roles.
Oh, the horror.Predictions
Let's review:
Event 1: Instagram is eaten alive by Facebook
Event 2: Facebook Camera comes lurching onto the scene like patient zero in a zombie outbreak.
Prediction: It won't be the last wobbling app cadaver we see.
As Facebook's growth continues, its appetite will continue growing.
And it will continue eyeing every app that smells vaguely of brains.
App-ocalypse
Yes, folks... the app-ocalypse is upon us... and the infection will spread.
The question now is whither Instagram?
Does Facebook continue with a double-Caged blockbuster... or does the Zuck consolidate Camera and Instagram into a single hunk of a service?
What's your prediction?
No Comments