Topic > Hard Bargaining Strategies Document - 1744

Power and politics play a key role in negotiating Internet top spots, especially when it comes to acquiring other Internet companies. Many of the Internet giants are striving to gain control over the latest technologies. For example, in a recent article in USA Today, Facebook purchased a photo-sharing company known as Instagram. The Instagram company has only been on the market for a couple of years; however it has become increasingly popular recently. Some say the deal worth $1 billion is outlandish, but an analyst at Moor Insights & Strategy said the acquisition is considered a "defensive" move as Facebook is known to buy smaller companies and incorporate their technology or closes them. Therefore his perspective is that Facebook acquired Instagram because it was a competitor in the photo sharing world and Facebook wanted to maintain power over the company (Swartz,