AI Snips
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A Shocking Acquisition
- David Rosenthal vividly remembers where he was when Facebook bought Instagram.
- The acquisition was shocking because Instagram had 13 employees, no revenue, and a $1B price tag.
The Dawn of the Unicorn
- Instagram's acquisition for $1B, despite having no revenue, marked a turning point in tech.
- It ushered in the age of the "unicorn," where valuations soared based on potential rather than proven profits.
Recapturing the Cool
- Facebook strategically acquired Instagram to recapture a younger audience and regain its "cool" factor.
- This acquisition was crucial because Facebook was becoming a utility, while Instagram remained a fun, engaging platform.