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May 26, 2012

Is Instagram Bigger than New York Times

Facebook recently purchased Instagram for $1 billion. The New York Times, on that same day, had a market capitalization of just over $946 million. Currently  its, public market valuation, the New York Times company is worth about $50 million less than the $1 billion dollars that Facebook just paid for Instagram.
Yes, the New York Times is an organization in transition. Yes, newspapers are struggling. Yes, digital monetization is a work in progress. And yet, the New York Times is a truly global brand, and has proven its longevity, even if it is in choppy waters at the current moment.
 How is it possibly that a 2 year old startup with 12 employees could be valued higher than one of the world's most venerable media companies?  This infographic makes it clear how the Web and Mobile Economy has produced a " start up equal to Nytimes in terms valuation