Although the widely talked about purchase of Instagram by Facebook for $1 billion was finalized in April 2012, there were also news that micro-blogging giant Twitter was also very much interested in purchasing the photo-sharing platform.
Kevin Systrom (@KevinSystrom), CEO of Instagram, was said to have committed to a $525 million deal to sell the company to Twitter weeks before the Facebook purchase.
The story originated from a report in the New York Times.
Mark Zuckerberg (@finkd), CEO of Facebook, bought Instagram after acquiring a cash-and-stock agreement a few weeks before the company was put up in the stock market. Facebook stocks dropped after the public offering with the transaction closing at $715 million in September.
According to the report, Systrom immediately accepted the deal from Facebook without informing them of the recent developments. Twitter executives could have had the chance to make a counteroffer.
According to Systrom, Instagram did not get any term sheets or formal offers from interested buyers except Facebook. Twitter executives, however, contend that they submitted a term sheet to Systrom, which indicated the specifics of the proposal.
Regardless of the statements, it is apparent that Facebook is the winner in the acquisition and has been making a number of changes. Instagram is more aggressive now with the financial backing of Facebook.
Twitter and Facebook did not give any statement or comments regarding the matter.
Twitter and Facebook/Instagram have been showing hostilities towards each other since the purchase.
Instagram recently prevented Twitter from posting Instagram photos, while Twitter also showcased its own photo color-filters to counter. Twitter also introduced a new look for its users, which is very much similar to the timeline of Facebook.
Social media experts and users expect more changes between the two companies over the next months. The social media world, composed of billions of users, is expected to be divided depending on the features and offers made by the two contending online giants.