Ino Detelić

Audi buys Ducati for $1.1B, Facebook buys Instagram for $1B.

9 April 2012 – Facebook bought Instagram for $1,000,000,000
18 April 2012 – Audi bought Ducati for $1,100,000,000

I will try to put things in perspective here:

Instagram is a social network built around a free photo filter mobile app made by a team of 13 people. In the beginning of 2012, the team was 7 people, they had 15 million users and the app was iPhone only. They have recently released an Android app.

Ducati is a historical motorcycle manufacturer founded in 1926, with excellent design that competes in the MotoGP and Superbike championships among others, as of 2011 they had 1,135 employees and a net income of 93 million Euros.

To make a comparison I’m trying to overvalue the Instagram brand, its user base and relation to facebook and twitter and their social graph, while I try to undervalue the importance of 2 wheeled vehicles nowadays, picture the MotoGP and Superbike simply as advertisement and discard the brands know-how, expertise and name, and I still can’t believe how it is possible that they can be valued so closely.

They aren’t worth the same.

They can’t be, not even close.

 

I don’t know much about the dot com bubble because I was a teenager at the time but this feels wrong and smells bad.

I hope it doesn’t end badly too.

Posted on April 19th, 2012 under random