Facebook CEO and co-founder Mark Zuckerberg was behind the $1 billion acquisition of Instagram. This is a different kind of role for him because usually it is a different executive that drives the company and talent acquisition deals.
It was less than 24 hours since Instagram raised a new round of funding, which gave them a value at $500 million that Mark Zuckerberg called Instagram CEO Kevin Systrom. Zuckerberg called Systrom privately on a Friday and over the next 48 hours, Facebook and Instagram hammered out the details of the $1 billion cash and stock deal. By the end of day on Sunday, the deal was closed.
Zuckerberg has 28.4% of all Class B shares and through agreements with other investors, he has voting control of over 57% of Class B shares. When the Class B shareholders sell their stock, Zuckerberg’s power will increase.
Most of the acquisitions that took place before this deal were controlled by former Google executive Amin Zoufonoun. This deal is an indication to how important mobile is to Zuckerberg. It almost implies that Zuckerberg saw Instagram as a threat to their mobile business.
Instagram hit 5 million users on Android in 6 days and 1 million on day 1. This added on to the 30 million users they had on iOS.