Facebook's Instagram acquisition: Putting it all into perspective

Big bucks buys through the years don't always turn out the way either party expects. Here are a few famous examples.

By Jared Newman, PC World |  Business, Facebook, instagram

The $1 billion that Facebook will spend to buy Instagram seems like an insane amount of money at first glance, but it's not unbelievable compared to what other tech companies have spent to acquire hot software and services over the years.

Google, Microsoft, Apple, Yahoo, and other major tech companies have all spent hundreds of millions -- or in some cases, billions -- of dollars to buy up popular apps, services, or Websites. Some of them, like Instagram, aren't even profitable. Here's how some of these big acquisitions stack up:

Apple Spent About $200 Million on Siri

Before Siri became the built-in virtual assistant on the iPhone 4S, it was a standalone app. Apple acquired the company of the same name about two years ago.

Although the exact purchase price wasn't disclosed, TechCrunch reports that Apple spent more than $200 million to buy Siri -- not a bad deal for software that's now at the heart of the iPhone.

Zynga Spent $210 Million on OMGPop

The overnight sensation Draw Something prompted a quick purchase by Zynga, maker of FarmVille, and Mafia Wars. Now Zynga just has to hope Draw Something wasn't a fad.

Electronic Arts Bought Playfish for $300 Million

Eager to get into the hot social gaming market, EA spent $300 million on the maker of Pet Society and Restaurant City, plus another $100 million if the company hits certain milestones.

Google Spent $1.65 Billion on YouTube

Nearly six years after Google acquired YouTube, the site still dominates online video, but whether it's a profitable enterprise remains unclear. (Analysts believe it could be, the New York Times reported last October.)

Microsoft Spent $8.5 Billion on Skype


Originally published on PC World |  Click here to read the original story.
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