‘Where I’ve Been’ Facebook app acquired for $3 million | CNET News.com

No surprise at all that FB apps can get acquired–I’d love to understand the valuation model though.  I’ve used this Where I’ve Been App.  It’s a fine app, sure, but I’d be hard pressed to pay $3M for it. 

The real question around valuation for something like this is how does one think about the opportunity costs?  If 1-2 devs can build this app, post and deploy it via Facebook, why would a ‘big company’ buy it for $3M?  Why wouldn’t BigCo get 1-2 devs to build the same app (or one slightly better), post and deploy it via Facebook?  I can’t imagine ‘being first’ is all that important for an app like this… 

Ah well, fools and their money. 

 

Report: ‘Where I’ve Been’ Facebook app acquired for $3 million | Tech news blog – CNET News.com

Advertisements

Leave a comment

Filed under bootstrapping, consumer, entrepreneurship, internet, tech

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s