Facebook “holy grail” market Hope!!

this is Personal view and a lil research by me, the blogger.
regarding merger of Facebook & Instagram, and their future value.

Since the Facebook’s IPO fiasco, and the 3months post-IPO of over 50billion wiped off from the market, retail investors and bankers were wary of Facebook values in the future, even with its staggering Users hook up rate (955mil) and Monthly Active Users, MAU (650 mil) it still haven’t found its Golden way into Mobile Advertising solutions. With the giant Google as their biggest competitors, Facebook has a lot of work to do in order to entice Marketers and Small businesses around the world to start to advert on its platform.

Recently with the Final approval of its biggest acquisitions of Instagram, a photo social sharing, currently the deal is worth $747 million, with $300 million in cash plus $447 million in stock based on 22,999,412 shares of Facebook at (Aug 22,2012) $19.44 share price. That’s a lot less than nearly $1 billion when the deal first was signed based on the $30 share price at the time, or the $1.14 billion expected from Facebook’s $38 IPO price.

Yeah…it seems value does easily falls right, anyway it means, Instagram getting a whole lot cheaper for Facebook to acquired with. I personally think Facebook acquisitions of Instagram in the first place does lucky, Mr.Mark Zuckerberg saw it as a potentials earlier, if it weren’t picked up by him, Google might making the same move later on, to incorporate famous photo social sharing base into a social web services does seems like a perfect practical integrations, or else we will see Google+Instagram?
( Who knows rite, should we email this to Sergey & Larry too? ) J

Well base on my research on March 20,2012. I calculated it in my own way ( nothing wrong to predict right? Being creative )

Instagram is based on its 50million users worldwide, as on “3rd of May, 2012” data, and Facebook already hit a staggering record of 900million users as on 30^th March, 2012...
considering Facebook valuations of $96 Billion with:
--900millions x 2 eyeballs = 1.8Billion (of viewing market capability),
--50millions of Instagram x 2 eyeballs = 100millions mobile + web (viewing market capability)

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And here is the updated version base on September 5,2012

Instagram is based on its ‘80million+’ users worldwide, as on 26th July, 2012 data, and Facebook already hit a staggering record of 955million users as on 1^st September, 2012...
considering Facebook valuations of $38 Billion with:
--955millions x 2 eyeballs = 1.91Billion (of viewing market capability),
--‘80millions+’ of Instagram x 2 eyeballs = 160millions mobile + web (viewing market capability)

This new data indicated that Facebook+Instagram combines is at 2.07billion (viewing market capability), if somehow Facebook can imitate the success from Google with its biggest chunk of revenue from its acquisition of search engine patent that today formed as AdWords and AdSense which patented by Ken Lang.

** 1998: Ken files a patent that classified how search results and ad results are sorted based on the number of click-thrus an ad gets. He sells the company to Lycos for $40 million. Ken Lang becomes CTO of Lycos and they take over his patents.

And combined with its own technology from its huge databases of users “likes”, photo, status posting, video, behavior, apps, and comments. It would create a total buzz for Google long term jewel crown in search ads business. And succeeded porting it into mobile world would totally Annihilated Google in the web.

Therefore I suggest investors to be patience and pray…your precious Money is coming back soon…

PS: CG – isn’t money is about investing with Time? :)