Zuckerberg defends $1bn Instagram purchase
Facebook founder Mark Zuckerberg has defended his decision to splurge $1bn on photo sharing app Instagram to investors – explaining his valuation of a firm which has zero revenue.
Zuckerberg is understood to have made the controversial decision with minimal consultation with fellow directors after identifying a “tipping point” in the company’s user data.
Instagram currently boasts 40m users but Zuckerberg believes that figure is poised to skyrocket, with the purchase preventing the popular product from falling into the hands of rivals – such as Twitter.
Zuckerberg mounted his defence to hundreds of investors at a closed door question and answer session around Facebook’s long term growth strategy and future vision in New York.