Originally Posted by Bob Maxey
I cannot comment until I know more about the purchase. A quick Google search indicates he probably made a mistake.
From one random site: "If the valuation of Instagram was unorthodox, so were the negotiations. No bankers or lawyers were involved in the sitting-room deal which was thrashed out between Zuckerberg and Systrom."
Seems Zuckerberg believes he owns the company. He must go if he is violating the rules and such purchases must be approved, first. I am sure the board can quash the sale, so the Instagram people should not start spending the billion just yet.
That said, this is not something every corporation does. CEOs are very aware of what they can and cannot do. Once your company goes public, you are no longer free to spend money at will. A CEO can go to jail for theft if he or she is use to spending his or her commany cash on silly things.
Naivety much? He owns 57% of the company. The board are a bunch of sheeple when faced with his domineering force.
Now, the market is a totally different story.
Not sure if you could classify spending $1Bn as a 'silly thing'.