2 Reasons Instagram Monetization Is a Win for Facebook Investors
It's funny to think back to when Facebook's 2012 buyout of photo sharing app Instagram shocked the investing world with its $715 million price tag.
Today, in light of Facebook's recent agreement to buy messaging start-up WhatsApp for a jaw dropping $19 billion, Facebook's Instagram buyout looks like chump change. However, one recent positive move at Instagram might also serve as a broader example of the merits to Facebook's M&A strategy then and now.
Monetization mania at Instagram
Facebook's management, especially founder and CEO Mark Zuckerberg, historically have had a slightly begrudging attitude toward monetization, which makes the ultimate return on its billion-dollar buyouts all the more unclear.
However, slowly but surely, Instagram appears to be making meaningful progress on toward raking in the big bucks as well. It recently signed a deal with global advertising powerhouse Omnicom that's worth $100 million over the next year. More broadly, this appears to be part of a broader, intelligent push to create shareholder value at Instagram as well.
In the following video, tech and telecom analyst Andrew Tonner looks at the Instagram news and the implications it could hold for Facebook investors more broadly.
Investing in more game-changing growth stocks like Facebook
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.
The article 2 Reasons Instagram Monetization Is a Win for Facebook Investors originally appeared on Fool.com.
Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
