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Five interesting facts from the story of the acquisition of Facebook-Instagram

Written By Unknown on Monday, April 23, 2012 | 2:02 PM

GadgetFan - It has been over a week since Facebook acquired Instagram, and until now many people are confused about the deal between two companies. The acquisition is still a hot topic because Instagram acquisition value of U.S. $ 1 billion.
The acquisition of a startup with a value of U.S. $ 1 billion in a span of only 48 hours is an act that does not make sense to some people. Some of the media was busy speculating about what goes on behind the deal that was built by the CEO, Zuckerberg and Kevin.

  1.  Zuckerberg has full control over Facebook. He had a 28 percent stake in the company, and controlled 57 percent of the voting rights. Zuckerberg does not need to consult with anyone for his decision, not even with Sheryl Sandberg or directors of Facebook. That's why Zuckerberg is able to negotiate and reach agreement with Instagram CEO, Kevin Systrom, in just two days.
  2. Kevin Systrom also have full power in Instagram and has about 40 percent of the shares of Instagram. Systrom have almost absolute authority and can make decisions quickly
  3. Zuckerberg did make the board elected at the organization's Facebook, but the voting procedure is merely a formality. Board of directors of companies actually have to vote on a change of control, but Zuckerberg has the power to choose any director who voted for him. In other words, Zuckerberg is an absolute opinion on Facebook, even at board level.
  4. Instagram acquisitions made Zuckerberg is defensive, not offensive. This is why the deal was so expensive, especially for a company that has an income of zero and has only 13 employees. Facebook can make your own filter, but it will not make Instagram stop growing and evolving into a social network. Current activities are focused on the activities of Facebook photo sharing and interacting, and Facebook can not let Instagram threatening activity. Zuckerberg knows that Instagram would be a threat if allowed to stand independently. Zuckerberg decided to buy it now with high prices.
  5. Instagram potential source of conflict for large companies in Silicon Valley. Conflict of interest is very possible considering the number of companies are trying to get Instagram, and most of the people is also important status as employees or board members participate in other companies and make investments. Facebook board member Marc Andreessen, is also one investor Instagram. Executive chairman of Twitter, Jack Dorsey, is one of the highest investor in Instagram. These dynamics will be a mess and that's what might be the reason why Mark Zuckerbreg not make an investment to startup companies.

Five facts provide a clearer picture of the reasons for acquiring Instagram Facebook and how social networking giant could do in a short time. The conclusion to be drawn is that Zuckerberg considers Instagram as a threat to Facebook and want to reduce the growth of Instagram. Then, with voice control that Zuckerberg had, he was able to make acquisitions quickly.
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