How To Go Beastmode As A Founder

Zuckerberg's Strategy

Mark Zuckerberg's negotiation strategy during the acquisition of Instagram was nothing short of relentless. Despite Instagram having zero revenue and fewer than 20 employees, Zuckerberg offered a staggering $1 billion, insisting the deal be closed over a weekend, even during Easter. This urgency caught competitors off guard, as they assumed negotiations would resume on Monday.

We got to do this deal this weekend. And he basically pushed him. And this was, again, it's Easter on Sunday. Nobody's working over the weekend.

--- Shaan Puri

Zuckerberg's belief that Facebook needed to acquire potential threats to its dominance drove this intense approach, resulting in a billion-dollar deal finalized in just 48 hours 1 2.

   

Competitive Edge

Instagram faced significant competitive challenges before its acquisition by Facebook. Twitter, led by Jack Dorsey, offered $550 million, and Sequoia Capital encouraged Instagram to remain independent with a $500 million valuation. However, Zuckerberg's persistence and willingness to double any existing offer proved decisive.

I will give you double whatever you're currently raising around at. So whatever your price is, I'll give you double.

--- Shaan Puri

This aggressive tactic left Instagram's founder, Kevin Systrom, with little choice but to accept Zuckerberg's offer, marking a pivotal moment in tech acquisition history 2.