DEC 16, 2012 7:00 PM10,00629
Report: Twitter Tried To Buy Instagram for $525 Million
We all remember when Facebook bought Instagram for a cool billion dollars, seemingly out of nowhere. Well now another piece of the story might be coming out. According to a report from The New York Times, Twitter made an offer too, for $525 million.
The Times report cites unnamed sources who say Instagram CEO Kevin Systrom agreed to a verbal offer of $525 million in March before changing his tune and deciding to stay independent. Then, of course, the Facebook acquisition happened, and according to the Time’s sources, Twitter was shocked; they’d been ready to make a counter-offer for more but the opportunity never arose.
The issue here, aside from Facebook vs. Twitter loyalty, is that Systrom later stated to the California Corporations Department—which was aiming to find out if the sale was made with investors’ best interests in mind—that Instagram had never received any other formal offers. He was under oath at the time.
Of course this adds a whole other flavor to Twitter and Instagram’s recent tiff over Instagram integration in the micro-blogging service if true. Also, if true, the claims could also mean some sticky legal issues ahead. So far, all the parties involved have declined to comment on the Time’s claims. We’ll have to wait and see if and how this all shakes out. [The New York Times]