This article says that Zuck rejected the $1b offer because he thought it was too low and that the board later rejected a lower number. Not exactly what you said. It specifically says that Zuck believed Facebook to be worth more than $1b. Which is directly counter to the statement "He would have sold for $1b."
Just having a conversation. M & A is one of my favorite topics. Zuck kept changing his mind. Following lines are also from the article. This story is now almost 10 years old so kind of hard to find related stuff.
"Yahoo lowered its offer to $850 million after announcing horrible Q2 earnings. Facebook's board took 10 minutes to reject the lowered offer"
http://www.businessinsider.com/all-the-companies-that-ever-t...
Details are little bit down in the page. You can also search the page with "In June 2006, Yahoo decided it had to have Facebook"