Instagram purchase born of rising mobile paranoia – Rethink Wireless

http://www.rethink-wireless.com/2012/04/12/instagram-purchase-born-rising-mobile-paranoia.htm

Thousands of column inches have understandably been written about Facebook’s $1bn acquisition of mobile photo sharing start-up Instagram. Whether the smaller firm is worth this huge sum is hardly relevant, but comparisons with the dotcom bubble are superficial. The apparently ridiculous valuations for companies like Instagram are not being driven by over-optimistic enthusiasm for a new market, as at the turn of the century, but by paranoia and a deep fear of failure in the mobile world.