Post-fact experts, also known as Monday morning quarterbacks, are not just in football, as this type of “I told you so after the situation hits the fan” thinking style is pervasive. Here is one with a financial edge to it.
So, did Instagram’s founder Kevin Systrom err in selling his company to Facebook for $1 billion? Eighteen months later, it is being speculated by investors that Systrom’s sale for $1 billion was a bad move.
The firm had no revenue at the time of its sale. Additionally, Systrom deposited hundreds of millions of dollars into his bank account and made his first 12 employees instant millionaires.
Today, many money analysts speculate that Instagram could sell for between $5 billion and $15 billion. Some investors who originally invested in Instagram feel that the startup should have remained a standalone longer, and that it could have been sold for more than $1 billion.
Billionaire Mark Cuban puts it all into perspective, as reported by the Business Insider.
…. Mark Cuban once sold a company to Yahoo for stock. He sold the stock as soon as he was able. Then the stock went up some more. The next time he was on CNBC, an anchor asked him: “Don’t you feel dumb that you cashed out your Yahoo (YHOO) stock at $200 and now it’s trading at over $230?”
Cuban's answer: “Well, it’s hard to feel dumb when you’re flying around in your [Gulfstream] G-5.”
The G-5 is pictured above.