TweakTown
Tech content trusted by users in North America and around the world
5,681 Reviews & Articles | 36,151 News Posts
Weekly Giveaway: Fractal Design Arc Cases Contest (Global Entry!)

Facebook's Mark Zuckerberg made his offer to purchase Instagram, had deal wrapped up in 48 hours

Facebook CEO, Mark Zuckerberg, called Instagram's co-creator to make $1 billion deal, took just 48 h

| Business, Financial & Legal News | Posted: Apr 13, 2012 1:11 am

When Facebook had announced they purchased Instagram for $1 billion, I was shocked, but not so shocked all at the same time. I had realised how popular Instagram was, and would get, but $1 billion from a company as powerful, as influential as Facebook? Just strange. Unless you wanted a ready-made, photo-sharing application and its creators, IP and everything else, so that your competition, Google and Twitter, couldn't scoop the opportunity before you could.

 

TweakTown image news/2/3/23541_01_facebook_s_mark_zuckerberg_made_his_offer_to_purchase_instagram_had_deal_wrapped_up_in_48_hours.jpg

 

It's being reported that Facebook CEO Mark Zuckerberg had called Instagram co-creator Kevin Systrom just after Instagram had secured $50 million in venture capitalist funding last Thursday, which pegged its value at $500 million. Zuckerberg called Systrom making his offer known, and by the end of the weekend Facebook acquired Instagram for double their pegged value.

 

How did Facebook make the deal so quickly? Well, Zuckerberg has majority voting power, where his Class B shares equate to over 57-percent. This makes his decisions kinda final, and his influence over them quite powerful. Most of his suggested plans would go through, unless he had a change of heart or a deliberate abstention from the voting process itself.

NEWS SOURCE
Electronista.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

Latest Downloads

View More Latest Downloads

TweakTown Web Poll

Question: Did EA kill the Battlefield franchise with the terrible BF4 issues?

Yes, Battlefield is doomed

No, Battlefield will live on strong

I'm not sure, but I know EA needs to improve its game

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases
Get TweakTown updates via Facebook!
Just click the "Like" button below