Whether he knows it or not, Mark Zuckerberg fired the starter’s pistol when he reportedly single-handedly spent more than $1 billion on photo-sharing app Instagram earlier this month. The Facebook CEO apparently cut his board of directors out of the picture and decided unilaterally to purchase the relatively small Instagram for a universally huge sum of $1 billion-plus.
Nearly two weeks later, we find out that Facebook dropped another half-billion dollars on a patent buy from Microsoft – who had purchased that chunk of patents and more from AOL for a billion bucks around the same time Facebook bought Instagram.
That might qualify as a spending spree. And when one social media giant whips out its checkbook like that, you can bet a handful of other players start to wriggle a bit in their office chairs. On the other side of things, when one of those checks gets delivered to the owners of an app, you can bet the sea of app developers starts to roil and swell with the “next big thing” hoping to emerge from the churn and become overnight gazillionaires. [Read more…]