by Gavin O'Malley on Apr 10, 10:12 AM
Though largely seen as a mobile play, Web watchers are seriously questioning the rationale behind Facebook’s decision to drop $1 billion on Instagram. “The price [is] stunning for an apps-maker without any significant revenue, even with soaring startup valuations in Silicon Valley,” writes
Reuters. “It’s a notable move for Facebook, which has exclusively focused on bite-size acquisitions, worth less than $100 million,” notes The New York Times’
DealBook blog. “A few days ago [Instagram] was rumored to be valued at $500 million,”
GigaOm’s Om Malik recalls. So, why pay twice the current valuation for a 2-year-old company? “Facebook …