– Instagram raised at $500M the day before Zuck offered $1B
– $1B was 25% of FB’s $4B cash on hand
– It was weeks before the FB IPO
– The board wasn’t consulted
– Instagram had no revenue
This was not an easy call!
Let me warp you back to the distant era of 2012…
“Why would Facebook pay $1 billion for a company with no revenue?”
“With Facebook’s public offering…only a few weeks away, spontaneous and improvisational business moves become more curious.” pic.twitter.com/jAwA08YhUh
— Balaji S. Srinivasan (@balajis) December 7, 2019