Instagram Deal

According to the New York Times, Instagram CEO Kevin Systrom had actually agreed to the deal with Twitter for a sum of $525 million (Rs 2,868 crores) but only verbally. The deal between the social networking site, Facebook and photo blogging software maker finally was signed for a sum $1 billion (Rs 5,462 crores), but unamed sources close Twitter and Facebook mention that the CEO had agreed to a price close to half of what they ended up getting in the end. Also, it has been said that the deal actually shocked the team at Twitter, becuase they finally did not get a chance to make a counter offer for Instagram. 
Systrom later told California state regulators under oath that his company had not received any "formal offers or term sheets" from potential buyers aside from Facebook, the Times report said, adding that its sources said Twitter executives had given Systrom a term sheet outlining the details of a proposed deal.
A spokeswoman for Facebook declined comment. Twitter could not be immediately reached for comment.  Facebook CEO Mark Zuckerberg ultimately acquired Instagram after pushing through a cash-and-stock deal just weeks before Facebook's May initial public offering. The transaction closed in September at a $715 million (Rs 3,908 crores) valuation, reflecting Facebook's stock drop since the offering.