toggle

AAPL Stock: 112.92 ( + 3.23 )

Printed from http://www.macnn.com

Report: Facebook board left out of Instagram negotiations

updated 09:30 am EDT, Wed April 18, 2012

Acquisition allegedly came as a surprise

Facebook chief executive Mark Zuckerberg reportedly excluded the company's board of directors from talks that eventually led to the recent Instagram acquisition. An unnamed source familiar with the negotiations told (sub. required) The Wall Street Journal that the board was "told, not consulted" after Zuckerberg privately established an agreement with Instagram co-founder Kevin Systrom.

Rather than involving the board and bringing in outside lawyers or other experts, Zuckerberg reportedly invited Systrom to his Palo Alto home for three days of talks. The parties eventually came to agree on $1 billion as the buyout price, after Systrom initially asked for $2 billion.

Sources suggest that Facebook's board did have the opportunity to vote on the deal, though Zuckerberg controls the majority of the company's voting rights and ultimately could have pursued the buyout even if he faced opposition from board members.

Facebook is said to be utilizing the acquisition to improve its influence on mobile photo sharing, bolstering the features available for users. Instagram is still expected to be available as a third-party app, however, rather than switching solely to a Facebook integrated feature.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented