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That's only 3.3 Instagram's, one Snapchat, or .21 WhatsApp's. Solid proof consumer tech is always more profitable then enterprise tech.

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No, you're wrong in two points: - they have higher profits than Snapchat or Whatsapp - you have chosen 1 enterprise tech and 3 consumer tech company randomly, and based on that, you claim that consumer tech is more profitable than enterprise tech.

Well, I say Microsoft makes more profit out of enterprise then Facebook makes out of consumer. Does this prove anything? Not at all.

agree with your reasoning. (though you probably should edit "randomly" part; those choices were handpicked, not randomly)

It is hard to compare companies that are bought out, since they are valued higher due to the network affects with their new parent company.

i.e. if Instagram had a valuation of $800 million the $1 billion purchase price could make sense if Facebook believes their combination could produce the difference in price.

It's not just network effects. Purchase of Snapchat at $21 billion, or Bebo at $870 million, had a lot to do with attempted strategic positioning and/or edging out competitors who were eyeing acquisition. Doesn't always mean the acq will perform to price.

But those are network effects. If I buy a product and kill it and make more money than if I had not purchased, then it was good acquisition.

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