$1 billion for Instagram was a bargain

There’s been a great deal of controversy about Facebook’s purchase of photo sharing site Instagram for $1 billion. As always, people are heralding it as a harbinger of a new social media bubble.

How can a site like Instagram possibly be worth that much, and how can it add to Facebook’s share value? But that’s the wrong question. The real question is, “How much is the future worth?”

Facebook is in the same league with Google and Apple as a company that transcends commerce and is defining how we live digitally. Steve Jobs didn’t make decisions based solely on immediate gain, as anyone who has read his biography knows. And I don’t think Mark Zuckerberg is making decisions based on share price. “I don’t claim to know anything more about him than anyone else who saw that movie, but I bet they have some interesting board meetings.”

Instagram has changed the way people share and engage around photos, and has brought together photography and mobile in a way that nothing else has. I’ve waited patiently for a good Flickr app for the iPhone. I finally got it with Instagram. I would go so far as to say Instagram is helping define a new visual paradigm for communication.

Facebook has so much money, that, like Google and Apple, they can afford to spend it on buying things that make sense, that are cool, that work, that define the future. Whatever Facebook does with Instagram, they own it now, and no one else will. In Zuckerberg’s mind, I’m sure that sounds like a bargain.

Now, when will Amazon buy Pinterest, and for how much? 2 billion?