Facebook Buys Instagram for $1B: Is Tech Worth It?

The times they are a'changing. On Monday, it was announced that Facebook was willing to pay $1 billion for sepia toned photos of hipsters in fields. The actual announcement was that Facebook forked over $1 billion to buy photo-sharing platform Instagram, specifically its active, passionate community and its dominance with mobile users. The Internet caught wind of the news in some pretty delightfully funny ways, but a general consensus emerged that digital/mobile technology and social media have undeniably changed, and will continue to change, how our world operates. These digital innovations took down former corporate giants like Kodak (which filed for bankruptcy filing in 2011) and may be taking down other media behemoths such as the New York Times: Instagram's $1 billion valuation edges out the NYT's $970 million. Yet some Instagram users fled and deleted their accounts to stay out from under the thumb of Mark Zuckerberg and many questioned whether users' photos were now the property of Zuckerberg and Facebook. It seems digital innovations may also be taking down our levels of privacy (whether we like it or not). While I am holding on to my privacy for dear life, I've been pretty cooperative being swept up in the tide of tech. But this deal made me think-- is Instagram really worth that much? Was Groupon worth that much? And what is the mark that these tech companies plan on leaving on the world?


I downloaded Instagram when I got an iPhone, but I never used it, considering I already have grainy yellow photos from the 80s and I've since determined that it's not a good color on me. Plus it's one more step I have to take to add a filter to a perfectly good photo. I get the allure of casting oneself as a hippie fairy or a mustacheoed, introspective member of Stillwater, but I don't see the longevity in it. It has made me rethink my current aspirations to do PR for a tech startup.

I became interested in tech companies and startups when I visited a high school friend who works at Pixar. Being on Pixar's ridiculously fun, creative campus in Emeryville, CA made me want to be a part of the scene and work for an organization that was pushing the boundaries of how we work/learn/interact/and play. I followed another fashion blogger who works at Google and became really interested in how she merged retail, fashion, and technology in her job. And I have become increasingly interested in PR for tech companies and startups since I started grad school and got to know more about the emerging field and the players in it. After working at a nonprofit, I know that I like environments that are hard work/high yield and are open to creativity in promoting the product/service/organization.

But like my nonprofit work, I get inspired by technology that solves real-people problems: things that outfit existing city buildings to be more eco-friendly, tools that make saving money while shopping easier, or ways for people to communicate information in high-need places like natural disaster sites. I'm not particularly inspired by software, B2B buzzwords, or photo filters. And while these services certainly must serve some purpose, I feel like Silicon Valley may be getting a little too big for its britches. Haven't we seen how this movie ends? (I'm looking at you, 90s tech bubble.) Groupon was cool for a 2 years and now is tired and annoying (and LivingSocial is bleeding losses after going on a massive hiring spree at the height of the coupon/deals craze), and unless Instagram starts lets me create and send photo books, teaches me how to professionally frame my "being pensive while walking along abandoned railroad tracks" shot, or lets me shoot grainy music videos, I don't know where the future utility lies or what is going to keep people interested.

My friend Ivi brought up that these kinds of companies are not actually changing anything or adding value to our society. I don't think every company needs to donate money to charity or have some peace, love, and rainbows mission statement, but I do have a suspicion in my heart of hearts that says $1 billion might be better spent on fixing real problems like disease, poverty, unemployment, hunger/access to water, or human rights -- not the light catching my crown of flowers in the right way.