Why Is Instagram Worth $1 Billion?

​The purchase of Instagram by Facebook has been covered extensively by all sorts of media outlets. And for good reason. $1 billion is a lot of money to pay for a small company that isn’t generating any revenue. The conversations have ranged from: “this is completely crazy” to “it’s a justified purchase” and every conceivable tangent in between.

I’ve been giving this some thought myself and, I’ll admit, I was certainly more on the “this is completely crazy” side of the fence. But, I think there are some possible justifications for a purchase of this magnitude.

Read the full article at Technori.