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How Long Before Facebook Writes Off Its $1B Purchase of Instagram?

Kevin Systrom's smartest move was to sell Instagram to Facebook early, before having to deliver even an iota of revenue. My prediction is that we’ll look back on Facebook's acquisition of Instagram as a bust—much in the same way we now view News Corp.’s purchase of Myspace, AOL’s purchase of Bebo, and Excite@Home’s purchase of Blue Mountain Arts.

 

AOL Close to Selling Bebo

AOL Close to Selling Bebo

AOL is near a deal to sell the Bebo social-networking site to Criterion Capital Partners for a fraction of the price it paid two years ago to buy it.

Senh: That's the problem with social networking sites. If you're just relying on online ads, it's really tough because click-through rates are really low for social networking sites. Users on social sites just don't click on ads, as compared to content sites.

 

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