Facebook’s Mark Zuckerberg defends $1bn Instagram purchase
FACEBOOK’S founder and chief executive has defended his decision to purchase Instagram, a photo-sharing app with no revenues, for $1bn last month, to hundreds of investors.
Beginning the social network’s investor roadshow, ahead of its highly anticipated initial public offering, Zuckerberg fielded questions about the controversial acquisition, which the 27 year-old founder is understood to have decided to go ahead with very little involvement from Facebook’s board of directors.
He said that Facebook had decided to buy Instagram when it saw the company’s user data cross a “tipping point”, from which they believed it would grow significantly.
Instagram has more than 40 million users. Zuckerberg explained that the company needed to move quickly once it learned the photo-sharing app was interested in being purchased.
It is believed Twitter had also been interested in snapping up the hot start-up.
Hundreds of investors turned out yesterday in New York to hear Zuckerberg answer questions about Facebook’s long term growth strategy and his vision for the future.
Wearing his trademark hoodie jumper and jeans, Zuckerberg also answered a question about Facebook’s plans to enter China.
He said that despite being currently blocked by the biggest internet using market, Facebook executives would be willing to sit down with Chinese government officials and talk about partnerships in the country.
Hundreds of investors queued top get into the event, which was off-limits to the media – as Facebook gears up for the largest initial public offering the technology sector has ever seen.
The social network founded aims to raise $5bn (£3.1bn) on May 18, valuing the company at $96bn.