Instagram is a free photo-sharing social network that enables users to share photos with users who are connected to a variety of social networking services. Facebook bought Instagram for $1 billion. But many of us may not know that Twitter wanted to buy Instagram for $525 million.
Unnamed sources close to Twitter and Facebook told The New York Times, Twitter offered $525 million to Kevin Systrom, CEO of Instagram, to buy the photo-sharing service Instagram. At that time Systrom verbally agreed to that offer. But later he got another proposal from Facebook’s co-founder Mark Zuckerberg. Zuckerberg offered $1 billion to buy Instagram. The most interesting thing is Facebook board was unaware of Instagram negotiations till the last moment as Zucherberg kept Instagram negotiations secret. At last Systrom refused Twitter’s offer and accepted Facebook’s offer.
Twitter executives were shocked as Systrom didn’t even give them a chance to make a counteroffer. But they were more shocked when Systrom told California state regulators under oath that he or his company had not received any “formal offers or term sheets” from potential buyers except Facebook. But the unnamed sources of The New York Times said Twitter executives had given Systrom a term sheet outlining the details of a proposed deal.
On the other side, earlier this month, Instagram shut off a functionality that allowed Twitter to display Instagram pictures, while Twitter introduced its own photo color-filters to compete with Instagram. Is it Facebook that told Instagram to do so? We don’t know. But what we know is when a spokeswoman for Facebook was being asked about the issue, she declined to comment.
Source: The New York Times
Thanks To: Reuters
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