By Special Correspondent Karla Gregg
The CEO of Facebook, Mark Zuckerburg, who negotiated the deal for Facebook’s $1 billion purchase of Instagram, kept his board of directors out of the plan, the Wall Street Journal reported.
After the purchase became a final deal with Instagram CEO Kevin Systrom, Zuckerburg then announced the company’s largest acquisition, to his board on April 8.
Sources say the negotiations happened at Zuckerberg’s Palo Alto home, with Systrom, the company, which launched Instagram back in 2010 with Mike Krieger. Apparently, Zukerburg believed that if lawyers rather than the CEO himself approached Systrom, the company might reject negotiations.
It is said that Zuckerburg, who owns 28 percent of Facebook stock and has 57 percent of voting rights, has the power to bypass any board related deal.
Sure, he’s the CEO but isn’t a company about team effort and shared ideas? Hmm, well I guess a CEO knows best, I mean he did get a $1 billion deal! Can’t blame him, right?
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