Facebook’s $1 billion purchase of Instagram has prompted much meditation on whether we’re seeing another Internet bubble.
Bloomberg View columnist Clive Crook meditates on something else: how the deal is a reflection of the forces of globalization and information technology, which have “multiplied the opportunities and grown the prize exponentially.”
Thanks to the Internet’s astonishing reach, a nifty product that required next to no labor and comparatively little capital quickly went from nowhere to tens of millions of users. The idea was valued at $1 billion even before there was a revenue model to support it, and who’s to say that’s too much?
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