Zuckerberg talked Instagram CEO down from $2 billion

Mark Zuckerberg halved the asking price for Instagram in negotiations

By - April 18, 2012
Facebook

Facebook’s acquisition of Instagram for $1 billion (R7.79 billion) was concluded by Mark Zuckerberg without the help of bankers or his own board of directors according to a report by the Wall Street Journal.

Zuckerberg currently controls 57 percent of Facebook, and had all but closed the deal with Instagram CEO Kevin Systrom before informing his own board of directors.

The board “was told, not consulted” about the deal on 8 April, a day before the rest of the world learned about the acquisition.

Negotiations began on 5 April when Zuckerberg called Systrom and invited him to meet at the Facebook CEOs home.

Two days before negotiations between Zuckerberg and Systrom commenced, Instagram released a version of its application on Android. This saw its membership base grow at a rate of 2,000 people per minute, adding 10 million members in 10 days.

This explosive growth is what appears to have attracted Zuckerberg to Instagram, who has yet to record any revenue.

Read the full story at: Cnet.

Forum discussion

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you think acting CEO Brian Molefe can fix Eskom's problems?

View Results

Loading ... Loading ...

More News

South African salaries in 2015: how much IT professionals earn

Salary

The MyBroadband salary survey reveals the average pay packages of IT professionals, including programmers, managers, web professionals, and support staff.

Guptas would welcome Eskom coal deal probe

Eskom

The Gupta family has said it would welcome any investigation into the reported awarding of a coal supply contract worth an estimated R400m a year

Top broadband countries in the world

Broadband

Point Topic’s latest broadband report reveals global broadband subscriber numbers and the top broadband countries in the world.

Is online piracy really stealing?

Internet piracy

Legally speaking, what online pirates are doing is a violation of intellectual property rights. But are they doing anything morally wrong?

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
X
bool(true)