With Instagram being purchased by Facebook; a) either there’s something more afoot than the firm’s picture-sharing ability; and/or b) P.T. Barnum’s quote is befitting!
Perhaps it is a combination of these two factors and/or others not known / mentioned at this juncture? Whatever the case may be, that’s a vast amount of money and stock to pay for a Start-up… particularly right before an IPO.
(Source) WSJ: http://goo.gl/FyC1Q