Articles like this annoy me. I just don't see many developers or startups being dumb enough to think they will actually be bought out by the companies listed (even with a large user base).
It's kind of like American Idol or X Factor; yeah there is a small chance of making it big, but most realise that the competition is tough and monetising startups can be very hard. Not like that is anything to worry about when being bought out, so it seems...
I think American Idol is a really good analogy. Companies like Instagram and OMGPOP are not technical wonders nor do they have great business plans. Hell, even the ideas of their winning apps are not new. But they won the popularity contest and thus cashed out. They CEOs instantly becoming the tech worlds equivalent of pop stars.
There is a more interesting question for investors and observers: Is this trend permanent or is it signalling that we are in another bubble that will one day collapse? If these companies lose their popularity is their value zero? Popularity is a volatile thing to ride billions of dollars on.
It's kind of like American Idol or X Factor; yeah there is a small chance of making it big, but most realise that the competition is tough and monetising startups can be very hard. Not like that is anything to worry about when being bought out, so it seems...