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The Inside Story of How Facebook Acquired Instagram
The social giant’s controversial $1 billion acquisition shows how a tech monopoly wields power
Facebook’s $1 billion acquisition of Instagram was a watershed moment for Big Tech. It demonstrated just how much wealth and power the industry holds — and how it could be wielded. Secret emails, published as part of a historic antitrust hearing, revealed that Mark Zuckerberg viewed the app as a threat to his own social network, and one to be neutralized at great cost. In this excerpt from No Filter: The Inside Story of Instagram, author Sarah Frier offers a window into how this monumental deal unfolded behind the scenes — and what Silicon Valley power looks like in action.
In early 2012, Twitter had been aggressively courting Instagram for a potential acquisition. Instagram’s founders, Kevin Systrom and Mike Krieger, were wined and dined over sushi and breakfast at the St. Regis hotel. Twitter even put together a term sheet to acquire them for 7% to 10% of its stock, worth $500 million to $700 million. CEO Dick Costolo explained his vision: that Systrom would get to continue running Instagram, but could also be head of Twitter’s product, and help Twitter become a more visual destination.
