3 key lessons from Facebook & Zynga's shopping spree

12 thoughts on “3 key lessons from Facebook & Zynga's shopping spree”

  1. Why is Google left out of these deals? If they were willing to spend $6 billion on Groupon why not $1 billion on Instagram? (Too much) confidence in their in-house team and the Motorola acquisition?

  2. Yep. Google doesn’t quite get that butt in seats, viewing things through a browser is not where the growth is yet. The Groupon things is about advertizing, Instagram is about mobile users. Seems like Facebook is racing to where the puck is going to be, not where it is.

  3. Absolutely right Om. You summarized the strategic thinking very clearly and succinctly. See the trend (or threat) and act quickly. When you see engagement and growth like that…it will only get bigger and more expensive later. Mobile is growing faster than any other segment. It is different than the web and requires different thinking/skills.

    Money managers should throw away the spreadsheets and think more about strategy.

    Don Dodge

  4. “Panic and act fast” is pretty much the definition of impulse buying. Not exactly optimal for a considered purchase like a $1 billion acquisition. No matter how much fanboys and media sycophants idealize Zuckerberg, the fact remains that he is a 28-year-old first-time CEO, and acquisitions are one of the most common mistakes that rookie CEOs make. A couple years after its IPO, when Facebook has to take a big goodwill write-down on Instagram, Zuckerberg’s fallibility will begin to dawn on people.

  5. my friend’s mother-in-law brought in $15579 a week ago. she been making cash on the internet and moved in a $328900 condo. All she did was get fortunate and follow the directions explained on this website (Click on menu Home more information) http://goo.gl/90bdk

  6. Great post Om. In the midst of all the naysayers it is refreshing to see a well articulated view on why this acquisition makes sense. I fully agree with your POV. Facebook and Zynga are smart to realize their weaknesses and don’t have NIH.

  7. 1% bet makes sense. That explains why Facebook $100Bn valuation is as crazy as Instagram’s $1Bn. Congratulations to all of their shareholders!

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