A PYMNTS Company

U.S.: New information suggests Instagram exec lied to feds in Facebook buyout

By  |  December 18, 2012

According to incoming reports, Instagram chief executive Kevin Systrom may not have told the entire truth in testimony given to the Federal Trade Commission during the mobile phone application company’s buyout by Facebook. The New York Times has reported that, despite the fact Systrom denied that any third parties were interested in buying Instagram, sources are now saying that Twitter was in the running to buy the company and had actually verbally agreed with Instagram to buy the photo application for $525 million in cash and Twitter stock. Facebook ultimately bought Instagram for $1 billion. Also according to sources, Systrom eventually told Twitter during talks that his company would remain independent, only to finalize a deal with Facebook three weeks later. No one from any of the three companies or the Federal Trade Commission would comment on the matter, and there are no current reports of any charges to be filed based on the new allegations.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full Content: Techno Buffalo

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.