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

Skype was barely profitable when Microsoft bought the VoIP and video chat service last year. Nonetheless, Microsoft is hoping to boost its other products by integrating Skype video chat. So far, it hasn't happened for Microsoft's big consumer products, such as Windows Phone and Kinect.

Google Almost Bought Yelp for $500 Million

In 2009, Google reportedly offered $500 million to acquire Yelp, a Website where users write their own reviews for local businesses. Yelp walked away, and Google was left to build its own local listings, with help from Zagat, which it acquired for $151 million.

Yahoo Bought Flickr for Just $35 Million

Compared to what Facebook paid for Instagram, Yahoo's purchase of Flickr in 2005 seems like a bargain. But Flickr failed to capitalize on the rise of smartphones and was simultaneously outshone by Facebook's own photo sharing. The site is most definitely not worth $1 billion now.

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