The foreign media, wrote today, Facebook and Instagram the transactions almost by Mark Zuckerberg (Mark Zuckerberg), orchestrated, and the Board of Directors all the way through the dark, until the completion of the transaction informed of this via e-mail .
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On the morning of Sunday, April 8, the young Facebook CEO Mark Zuckerberg (Mar Zuckerberg) notify the Board of Directors, he was prepared to buy the popular photo sharing service as Instagram.
Later in the day, which became the largest since the Facebook was founded transaction. However, informed sources, Zuckerberg and as Instagram CEO Kevin Heath Lindstrom (Kevin Systrom), has embarked on three days of negotiations, but Facebook’s board previously has been kept in the dark.
Zuckerberg almost single-handedly completed the negotiations. Heath Lindstrom initial offer of $ 2 billion, after a series of bargaining, the two under the age of 30 Maotouxiaohuo eventually finalized the price is $ 1,000,000,000. The whole process is completed Zuckerberg mansion located 帕罗奥尔托.
Within three days to close a deal on Facebook can be described as rapid. After a few weeks will be U.S. $ 100 billion price valuation listed, vibrant companies are sparing no effort to package himself. By convention, the transaction is finalized, both parties will employ a large number of lawyers and bankers rules, this process usually takes several days or even weeks.
Zuckerberg did not adhere to the traditional. Wait until the Board of Directors know, the transaction has been completed. According to informed sources, Zuckerberg is the attitude of the board of directors is to “inform, rather than ask”.
Zuckerberg Facebook, 28% of the shares held, but controls 57% of the voting rights. So, if he wishes, and can act independently. Similarly, Heath Lindstrom Instagram the stake of up to 45%. In this control structure, investors can only accept the CEO of this vigorous and resolute style.
Supporters argue that, in the competitive fast-changing field of network services and social networking, which will become a big advantage of Facebook’s. According to informed sources, Zuckerberg Instagram the transaction process are most worried about is if he insists on initiating contact through a lawyer, may lead to the resentment of the Heath Lindstrom. Informed sources also said that, Facebook Director of Business Development Amin · Zhefu Na (Amin Zoufonoun), also provides help for Zuckerberg late in the negotiations to finalize some details.
This prompt and decisive decision-making mode in the private start-up companies is very common, but difficult to improve the organizational structure of the high market capitalization of listed companies. Facebook is about the former into the latter’s ranks.
“The board’s role is to contain the CEO, they are the last line of defense of minority shareholders.” Drexel University Business School professor Ralph Walker, Ling (Ralpha A. Walkling), said he was Executive Director of the school Center for Corporate Governance.
Informed sources, Facebook’s board of directors did not vote on the transaction. Even if the vote is only through the motions.
Informed sources said, Facebook, Shirley, COO Sheryl Sandberg (Sheryl Sandberg) is informed of April 5 Zuckerberg wants to acquire Instagram the, but she was not involved in the negotiations. 42-year-old Sandberg from Google (microblogging) in 2008 switched to Faceboook Zuckerberg provide a more professional execution is one of her main responsibilities. Zuckerberg alone acquisition Instagram the behavior of wake-up call for investors: Facebook, in a sense is still the “mouthpiece”.
The person in command
This flash trading began in the April 5, Zuckerberg Heath Lindstrom play a phone call. Time, hours before Heath Lindstrom has just completed a $ 50 million in venture capital transactions. The Instagram only 13 employees, and did not enter a single cent, but still in the investment valuation of $ 500 000 000. Since last summer, Zuckerberg has always wanted to acquisition as Instagram, when he thinks the time is ripe, they called the Heath Lindstrom’s phone.
That night, the two CEOs to meet Zuckerberg home.
The Instagram such company valuation, the traditional model of the role of Wall Street. Venture company was established just 18 months, and no income, but the rapid growth of the hands of Heath Lindstrom’s largest chips. Facebook in the iPhone and other mobile devices move forward, but Instagram performance, but also target lock the favorite activities of Facebook users – share your photos.
Instagram has developed a smart phone application, can take pictures, to beautify pictures using special effects, but also to share with friends. The first three months of this year, its total users doubled to 30 million. As Instagram, April 3, published applications for the Google Android operating system, the user re-surge. About $ 35 million contract with Facebook.
To informed sources, see millions of users have downloaded the Android application, Zuckerberg worried. He was most worried about is: When a rising star in the pace of innovation, Facebook will be left behind.
The past, Facebook’s M & A In order to recruit talent. Zuckerberg identified is available only after he is usually assigned to other employees responsible for the details of the transaction.
But this time, he was personally in command. Zuckerberg out of the weekend to negotiate, which is equivalent to Heath Lindstrom stressed the importance deal. “U.S. venture investment company Baseline Ventures, a founding partner of Steve Anderson, Steve Anderson, said, His company is Instagram the first investors.
To informed sources, on Thursday night, two of them Zuckerberg army for five hundred years of the room mansion opened the prelude to the negotiations. Friday and Saturday and then another meeting, and eventually spent 12 hours on Sunday reached an agreement. Informed sources said that Heath Lindstrom every night drive back home in San Francisco.
As Instagram on-line on October 6, 2010, on the first day attracted about 25,000 users. By May 2011, the user has exceeded 3.75 million. This rapid growth has attracted a lot of early suitors – to informed sources, Twitter, had its olive branch in early 2011, Zuckerberg expressed the intention to acquire in the summer of that year. Heath Lindstrom refused, he was determined to build their own company.
But now, Heath Lindstrom Zuckerberg home Isntagram asking price of $ 2 billion. Informed sources said that Instagram the valuation, in accordance with a certain percentage of Facebook’s Zuckerberg suggested.
Informed sources said that Zuckerberg wants to stock form of payment, Facebook valuation questions to Heath Lindstrom. He said that if Heath Lindstrom Facebook one day, like Google worth 200 billion U.S. dollars or more, then Facebook, 1% of the stock would be sufficient for the offer.
This view Heath Lindstrom hard to refute. After all, the traditional valuation methods based on total cash flow and classification does not apply to enterprises that only a free product.
Zuckerberg promised to Heath Lindstrom, Instagram can still remain independent after the acquisition. Saturday and Sunday, Facebook’s Zhefu Na in Zuckerberg home to help him finalize the contract details. But Zhe Funa declined to comment.
Heath Lindstrom endorsed the view of Zuckerberg. Informed sources said that the way Sunday at noon, Heath Lindstrom drove 帕罗奥尔托 the investors to negotiate an end to the message notification. Earlier in the day, Zuckerberg also informed by e-mail Facebook board, the transaction has been completed.
Informed sources revealed that about 6:00 that night, home Zuckerberg, Facebook director, Mark Anderson (Marc Andreessen) to participate in regular meetings. But he did not know, Heath Lindstrom who was in another room to convince Instagram the Board signed off the deal.
Anderson where Anderson – Horowitz Fund (Andreessen Horowitz) is the second investment Instagram the venture capital firm, before the service line to its injection of $ 250,000. An hour later, Heath Lindstrom walked into the meeting room of Anderson and Mark Zuckerberg, which made Anderson surprised.
To informed sources, the two CEOs will be the completion of the transaction to notify the respective board of directors, as Instagram investors have sent a congratulations e-mail.
Zuckerberg last 6 months’ no longer in use Instagram, but completion of the transaction the next day, he will return as Instagram own white Polly dogs and took a photo, which reads: “in bed asleep. “