INSANITY: Facebook App Sells to TripAdvisor for $3 Million

 By 
Pete Cashmore
 on 
INSANITY: Facebook App Sells to TripAdvisor for $3 Million

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Update: A Tripadvisor spokesman says this is "untrue".

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Let's hope this is the peak of the Facebook hype: TripAdvisor has reportedly acquired the Facebook application Where I’ve Been for a ridiculous $3 million, resulting in a huge payout for developer Craig Ulliott.

If true, TripAdvisor is paying $1.30 for each of the 2.3 million "users", says InsideFacebook. We say users in a relative way, however, since these surely aren't as valuable as the users on an independent site: they're "borrowed" members of Facebook who could ultimately decide that they'd like to switch to a different travel app. Monetizing them, meanwhile, is also a challenge. No doubt TripAdvisor was wise to tap the youth demo through acquisition, but justifying that price seems impossible.

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