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Mark Zuckerberg Bought Instagram Without Really Asking the Facebook Board

2012-04-18 10:12 by
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Facebook's CEO Mark Zuckerberg made the company's largest acquisition ever without consulting his board of directors, according to the Wall Street Journal. Instead, the 27-year-old boss decided to buy the photo-sharing app Instagram for $1 billion from the privacy of his $7 million Palo Alto home, where he negotiated for three days with 28-year-old Instagram founder Kevin Systrom. Then, according to a Journal source, the board "was told, not consulted."

Instagram initially wanted $2bn for its goods, the report claims. Citing a person familiar with the matter, the WSJ said that the CEO of Instagram, 29-year-old Kevin Systrom – asked for £2bn for the company, which has 13 employees and no cash flow.

To investors, the move can be seen as a statement about the CEO's power, especially with the company about to enter a new chapter. Zuckerberg has already been criticized for skipping briefings with analysts about the IPO, and not treating investors with the appropriate warmth, perhaps indicating tensions to come in the public era.

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