Twitter had offered $525 million to buy Instagram: Report
Before Facebook acquired Instagram for $1 billion, Twitter had set its sights on the photo sharing service and even had a deal in place to buy the service for $525 million back in March this year, according to a New York Times report.
The NYT report goes on to say that CEO Kevin Systrom and co-founder Mike Krieger had initially agreed to sell the service to Twitter before deciding to “remain independent”. Just three weeks after, Facebook-Instagram deal was announced, leaving Twitter executives shocked that they had not been given an opportunity to present a counteroffer. According to NYT souces, Twitter was set to make higher offers.
It’s notable Systrom had told US regulators under oath that the company didn’t receive any “formal offers or term sheets”. “No, we never received any offers,” according to transcripts of the hearings. He said Instagram had “talked to other parties, but never received any formal offers from anybody else.” Ivan V. Griswold, a lawyer for the state regulators, asked again: “Immediately before the negotiations, did you receive any offers from invest — .” Before he could finish his question, the transcripts show, Mr. Systrom cut him off. “We never received any formal offers or term sheets,” Mr. Systrom said. “No.”
However, The NYT claims the accounts of several people close to Twitter and Facebook, and documents reviewed by it contradicts the statements made by Systrom and Mike Krieger under the oath.
“Mr. Systrom and Mike Krieger, the other founder of Instagram, held several meetings as late as March with top Twitter executives, according to people on both sides of the talks, who requested anonymity because the talks were private and because they were concerned about legal repercussions. These people said the sides had verbally agreed weeks earlier on a price for Instagram of $525 million in cash and Twitter shares,” says the report.
The revelation of Twitter’s reported plans to buy Instagram comes shortly after Instagram took away Twitter’s ability to display Instagram pictures. In response, Twitter launched its own photo filter features. Read more about the development here.
Source: The New York Times