You nailed it. GKNT shareholder here. They have struggled for years to monetize the media business, with little success (profit-wise). Cost of revenue is always very high. Add in a lot of turnover in editorial/content/business leadership (basically everything on the media side) and it has been a whole lot of operating losses. ThinkGeek, meanwhile, has had great year-over-year sales increases, and costs are being brought under control. With the sale of media business, 2012 could be GKNT's first profitable year in many a year (or ever--haven't checked back more than 5 years). Or it could be they finally unloaded the media business (they hired a company to shop it around, BTW) and will now try to sell the e-commerce side (say, to Amazon) and close the doors.

Perhaps, but how much revenue did Instagram have?

The had millions of users using it for photos when Facebook, who had lots of money, was worried.

Speculation drove up Instagram's "value". As did a likely bidding war with Google.

And it's an established business. No zero-point extrapolation here.

I heard $5M.