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 $US525 million.
The Times report cites unnamed sources who say Instagram CEO Kevin Systrom agreed to a verbal offer of $US525 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 flavour 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.