It turns out Facebook Co-Founder and Chief Executive Officer Mark Zuckerberg negotiated the $1 billion purchase of Instagram all on his own, only giving the company’s board a heads up the day the deal was announced.
That’s according to a story in today’s Wall Street Journal that gives a tick-tock on how the deal went down. The piece examines what the Facebook board knew — and when it new it.
The board, which features such heavy hitters as Marc Andreesen and Netflix CEO Reed Hastings, didn’t know much.
Even Facebook’s second in command, Chief Operating Officer Sharon Sandberg, only learned of the deal the Thursday before it was announced and reportedly played no role in the negotiations.
Zuckerberg and former Instagram Co-Founder Kevin Systrom negotiated the deal at the Facebook CEO’s house over a three day period, announcing the deal on Monday, April 9.
Zuckerberg negotiated with his Instagram counterpart down from an original $2 billion offer, asking Systrom whether he thought Facebook could one day be worth more than $200 billion, roughly the size of Google. Systrom agreed to the one percent or roughly $1 billion in stock.
Readers, do you think Instagram is worth its $1 billion price tag?
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