Whilst many were shocked at the $1 billion (£625.9m) fee social behemoth Facebook paid for Instagram in a recent buyout, new reports have suggested the camera app company had originally targeted a $2bn valuation.
With Instagram co-founder Kevin Systrom reportedly demanding $2 billion for the sale of Instagram, it is claimed Facebook founder Mark Zuckerberg battled the fee down offering fellow start up Systrom a 1 per cent share in the globally dominant social network.
Ahead of Facebook’s public offering the Twitter rival which has around 800 million users is estimated to be worth $100 billion with this figure expected to rise once the company is floated on public markets.
Taking just three days to come to terms on a takeover the Wall Street Journal has reported that Zuckerbreg told the Instagram head Facebook would one day be worth more than $200 billion with the 1 per cent share in the company to eventually yield the $2 billion Systrom desired.
“Mr. Zuckerberg, who planned to pay for Instagram mostly with stock, asked Mr. Systrom what he thought Facebook would be worth,” the WSJ stated.
“If he believed Facebook would one day be worth as much as a company like Google at $200 billion or more, then the equivalent of 1% of Facebook would be sufficient to meet his price, Mr. Zuckerberg told Mr. Systrom.”
Originally exclusive to Apple’s much loved iPhone powering iOS platform, Instagram, which is now available for Android devices, is a free to download application with allows smartphone users to give their handset captured snaps a vintage and iconic appearance before uploading and sharing with friends.
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