Instagram initially wanted $2 billion for sale to Facebook

Earlier in April, the business world was shocked to hear that Facebook had paid $1 billion to acquire Instagram. As it turned out, the leaders of Instagram were originally looking for a much bigger pay day and had to settle for "just" $1 billion.

As reported by The Wall Street Journal, the CEO of Instagram, Kevin Systrom, wanted as much as $2 billion for the company he helped to found. The article says that Facebook CEO Mark Zuckerberg managed to convince Systrom to take the lower $1 billion price. Zuckerberg also told Systrom that Instagram would continue to be run as if it was a separate company.

Zuckerberg, who owns a controlling interest in Facebook, handled the negotiations for the Instagram deal on his own, according to the report. On Sunday, April 8, one day before the deal was officially announced, Zuckerberg informed Facebook's board of directors that he was going to acquire Instagram after three days of talks with Systrom.

In his official Instagram announcement on April 9, Zuckerberg provided some hints as to what Facebook plans to do with the company, saying, "We will try to learn from Instagram's experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook's strong engineering team and infrastructure."

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Greedy b***ards! That's what you call "selling out". But I would have done the same thing.

It's almost like bottled water. What a USELESS idea (at least here in the U.S.) and yet it's a multi-billion dollar a year business. So, make an app that applies a handful of filters to a photo and you're a billionaire? Genius!

My app changes the color of photos and allows you to adjust the transparency. Maybe mine is worth 2 billion since I have double the features of Instagram... Freaking tech bubble 2.0, have we all forgotten already what happened the first time around?

The big thing of the app is the 30M users and the social features of it. If youv used it you know.
You have very nice and simple effect, not too complicated, and you can consult your friends pics and places, its quite amazing if youv tried it.

Sure, why not, it's play money for the two of them. I mean, this isn't a seriously company valuation, it's based on "users", and what they got was half of what they wanted. That could never happen with a real company that produces tangible product.