Twitter had offered Instagram $525 million deal: report

SAN FRANCISCO Mon Dec 17, 2012 10:17am IST

A Twitter page is displayed on a laptop computer in Los Angeles October 13, 2009. REUTERS/Mario Anzuoni/Files

A Twitter page is displayed on a laptop computer in Los Angeles October 13, 2009.

Credit: Reuters/Mario Anzuoni/Files

Stocks

   

SAN FRANCISCO (Reuters) - Weeks before he accepted a $1 billion buyout offer from Facebook Inc (FB.O), Instagram CEO Kevin Systrom had verbally agreed to a $525 million offer from Twitter, according to a report in The New York Times citing unnamed sources close to Twitter and Facebook.

Twitter executives were then shocked that Systrom went ahead with the Facebook deal without giving them a chance to make a counteroffer, the Times reported.

Systrom later told California state regulators under oath that his company had not received any "formal offers or term sheets" from potential buyers aside from Facebook, the Times report said, adding that its sources said Twitter executives had given Systrom a term sheet outlining the details of a proposed deal.

A spokeswoman for Facebook declined comment. Twitter could not be immediately reached for comment.

Facebook CEO Mark Zuckerberg ultimately acquired Instagram after pushing through a cash-and-stock deal just weeks before Facebook's May initial public offering. The transaction closed in September at a $715 million valuation, reflecting Facebook's stock drop since the offering.

Relations between Twitter, Instagram and Facebook have soured since Facebook successfully swooped in on the photo service. Earlier this month, Instagram shut off a functionality that allowed Twitter to display Instagram pictures, while Twitter has introduced its own photo color-filters to compete with Instagram.

(Reporting by Gerry Shih; editing by Marguerita Choy, Gary Crosse)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet  Full Article 

Oil Prices

Oil Prices

Oil rebounds above $62, tracking broader markets  Full Article 

Tracking Gold

Tracking Gold

Gold inches higher on weaker dollar, Asian buying  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but says no proof N.Korea hacked Sony  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage