Why Has Facebook Paid $1BN for Instagram?

Tuesday, 10 Apr 2012 | 2:00 AM ET

George Godber, founding partner and fund manager at Matterley Asset Management, told CNBC, "It would be very difficult for us to get involved with Facebook, a 100 billion valuation is going to be hefty for a business that is not generating much profit, I think they are flexing their muscles a little bit ahead of floatation to show just how big they are and what they can do."