While under oath, Kevin Systrom: “No, we never received any offers,”
Reality, Instagram had an offer from Twitter and Kevin Systrom had direct knowledge.
http://bits.blogs.nytimes.com/2012/12/16/disruptions-instagr...
That said, at least it looks like they're going to tweak the TOS change in favor of their users. But with Facebook pulling the reigns, we all know where this will end.