Last week, when Instagram was valued at $500 million, people scoffed.
It's just a simple photo sharing app with only 30 million users and no real business model. How can that be worth $500 million?
Turns out that they were right. It's worth $1 billion instead.
Companies are just crazy with what they are paying nowadays. Hotmail may have been worth half a billion, but a picture sharing site? Come on.
Catch News Stream with Kristie Lu Stout weekdays at 8pm HKT/ 12pm GMT / 8am ET on CNN International.