Web app for taking and sharing pictures taken with your digital camera over ADSL broadband to brag/talk to your friends about.
2 years of existence
1 product
24 employees
30M+ users
$0 revenue
What exactly is your point? Instagram had insane adoption and was eroding Facebook's control over both pictures and mobile - the two biggest drivers of future growth over the next decade in both users and ad dollars.
Facebook bought them with overvalued stock (before IPO) so it was ~$500 million which is the same as what the VCs valued it at a month before it was acquired.
It was a good acquisition - basically a hedge against market obsolescence, easy injection of new IP and easy injection of mobile users.
Excite could've bought Google for ~$1 million back in the late 90s. Yahoo! could've had Facebook for ~$1 billion if the pressure on Zuckerberg was higher.
They choose not to buy that option. They don't exist anymore.