"It is possible investors would have been better off selling in an open auction, to Twitter or even to Google or Microsoft."
Really? This is not the sale of a Picasso painting. I believe there is always risk of putting off potential buyers, and you might not get the highest bid by optimizing the process down to the last detail. You might as well close it while you can. I believe the founders did the right thing.
Not specifically re Instagram but in general -- yep -- I have seen certain buyers walk from acquisition discussions when a process opened up. It's a tricky process, and the devil's in the details.
Really? This is not the sale of a Picasso painting. I believe there is always risk of putting off potential buyers, and you might not get the highest bid by optimizing the process down to the last detail. You might as well close it while you can. I believe the founders did the right thing.