The New York Times is 'Worth' Less Than Instagram

#Internet

Sun, Apr 15th, 2012 20:00 by capnasty NEWS

The New York Times, when compared to Instagram -- a company with about 10 employees, 30 million users and less than two years of life -- has a market cap of only $950 million -- $50 million less than what Facebook paid for Instagram.

This will make you think: at its current, 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.

Instagram isn't really worth that much if you compare it to a regular brick-and-mortar business. But if you were to look at it from a "social value" perspective, then just take Pinterest as an example: the company is now third place for social networks, just behind Facebook and Twitter. The value, therefore, is then based on the number of users, their comments, photos posted and 'likes': in other words, from the number of users who use the service and who use it more than once a day. How soon, then, before Google buys up Twitter to make up for the deserted landscape that has become Google+?

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