Instagram’s 13 employees share $ 100m as CEO set to make $ 400m reveals he once turned down a job at Facebook
The 13 employees of photo-sharing service Instagram
are celebrating today after learning they are set to become multi-millionaires following the company’s $ 1billion takeover by Facebook.
the 26-year-old CEO of the San-Francisco
based photo-sharing service, which was started just 15 months ago, will net an estimated $ 400m. Co-founder Mike Krieger, who holds a 10 per cent stake, and will earn around $ 100m.
Now a source close to the company has revealed that a further 10 per cent stake, equating to $ 100million will be shared out among the firm’s 13 employees.
Facebook owner Mark Zuckerberg, far left, paid Instagram co-founders, Kevin Systrom (pictured right) and Mike Krieger (next to him) $ 1 billion for their popular photo-sharing app
Instagram allows users to give images different filters before posting them online
Instagram’s new offices in San Francisco. Despite being sold for $ 1bn the firm was started only 15 months ago and employees just 13 people
The deal comes eight years after Mr Systrom turned down Mark Zuckerberg’s offer to join the Facebook team in 2004 – before it shot to success.
The app, which allows users to alter and post images on their smartphones and tablets, will be paid for in cash and Facebook stock. Facebook will complete its initial public offering of stock next month.
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Instagram allows users to customise photos by adding special effects or tints before quickly uploading them onto a variety of social-networking sites.
However many users have accused the service of ‘selling out’ and have raised concerns that Facebook will now use their personal data bombard them with adverts.
Mr Zuckerburg has promised
to build on the Instagram’s existing features rather than simply integrate them into Facebook.
And he promised to keep Instagram running as an independent program so it will still be able to be used on rival social networks, such as Twitter.
‘This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all.
‘But providing the best photo sharing experience is one reason why so many people love’ Facebook and we knew it would be worth bringing these two companies together.
‘We think the fact
that Instagram is connected to other services beyond Facebook is an important part of the experience.’