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Zuckerberg Defends His Billion-Dollar Instagram Splurge

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Zuckerberg Defends His Billion-Dollar Instagram Splurge

Late yesterday Facebook CEO Mark Zuckerberg faced questions from potential investors in the first part of his pre-IPO whirlwind roadshow. At the New York meeting, Zuckerberg dealt with a lot of questions about his impulsive purchase of Instagram. The deal involved a huge billion-dollar payout for a company that was less than 500 days old and was carried out without board involvement—facts that unsettle investors who are looking for stable, responsible corporate governance. Zuckberg explained that Instagram had grown past a tipping point (which we can assume was the million-users-in-a-day growth after the Android app hit) and was being pursued by other parties like Twitter, necessitating fast negotiations. The young CEO also explained his position on entering China—a willingness to talk with Chinese officials, as the site is currently blocked.

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