Instagram CEO had agreed to sell company to Twitter for $525 million.

kevin systromSan Francisco: Weeks before he accepted a $1 billion offer from Facebook, Instagram CEO Kevin Systrom had vocally agreed to sell his photo-sharing company to Twitter Inc for $525 million in March but then called off the deal, according to a report.

Facebook CEO Mark Zuckerberg finally purchased 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 valuation, reflecting Facebook’s stock drop since the offering.

During negotiations with Instagram, Twitter executives had handed Systrom a term sheet outlining the details of the anticipated deal, the report said, but Systrom later told California state regulators under oath that his company had not received any formal offers or term sheets from prospective buyers besides Facebook.

Earlier this month, Instagram shut off a functionality that allowed Twitter to display Instagram pictures, whereas Twitter introduced its own photo colour-filters to confront Instagram.

A spokeswoman for Facebook declined to comment. Twitter could not be directly reached for comment.

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