The great thing about the Web is that it has given the opportunity to billions of people, who would otherwise never have had a chance to publish, to express their most urgent thoughts with an Internet connection and a few finger-flicks. It’s also the Web’s downside, as you know if you’ve had the misfortune to encounter a triple-Lutz revolting page during a Google search.
Today, Facebook purchased Instagram – maker of the wildly popular iPhone and Android photo-sharing app of the same name – for $1 billion. That’s a lot of money for a company that’s less than two years old and has no real revenues. But viewed historically the deal is a smart one. Facebook founder Mark Zuckerberg is onto something. The human desire for self-expression – to say something as simple as “I’m here” – is insatiable, and Instagram exploits it superbly.
Chris Hughes joins the pantheon of vanity press moguls with the announcement today of his purchase of a majority interest in the New Republic. The 28-year-old Hughes, a co-founder of Facebook, commands a net worth that Forbes put “in the $700 million range” last year. Based on this portfolio, Hughes should be able to sustain the magazine’s annual losses — which Anne Peretz, the ex-wife of former owner Martin Peretz put at $3 million a year — for a couple of hundred years after his death.