When Facebook bought Instagram for $1 billion, the reason why the number was so high was because Twitter made an offer to buy them for $525 million. We knew that Twitter made an offer before, but we did not know until today that the amount was $525 million. The New York Times cited this information based on a source with Instagram.
Instagram CEO Kevin Systrom accepted a verbal offer of the $525 million from Twitter in March. Twitter was shocked about Facebook’s acquisition and they were even ready to make a counter-offer, but that opportunity never came up.
When speaking with the California Corporations Department, Systrom said under oath that the company never received any other formal offers besides the Facebook offer.