Originally Posted by Orrin Well... except for the fact that instagram makes 0$ revenue.

I believe the logic here is flawed.

Facebook bought Instagram because Instagram was the leading competitor to what Facebook was already trying to develop: an easy way to share images. The acquisition by Facebook makes sense because it integrates with their main platform.

To say that Yahoo should have bought Instagram instead is rather illogical. Where/how is Yahoo going to use Instagram to promote its platform/product and thereby increase sales?