11 May 2012 - 5:28am | posted by | 0 comments

Facebook' s $1 billion Instagram deal may have the brakes put on it

Facebook deal delayed?Facebook deal delayed?

Could Facebook's $1 billion fast purchase of Instagram, the photo-sharing app firm, be delayed by six months or more? The question arises because America's Federal Trade Commission may have opened a probe into the deal, announced in April, to acquire the app for $1 billion in cash and stock.

According to Facebook's pre-IPO documents, the company had expected the deal to close by the end of June.

But a new report, lurking behind the paywall of the Financial Times, raises the possibility that the deal may be delayed.

According to the FT, two sources said that the FTC has begun an antitrust investigation into the deal.

"The competition probe - routine for any deal more than $66m - is likely to take six to 12 months, according to several experts," writes the paper.

Facebook has said it will pay Instagram $200 million if the deal falls through.

An FTC Spokesman told The Huffington Post, “The FTC doesn’t have anything to say about this. We haven't even said that we’re the agency responsible,” pointing out that the Department of Justice also has oversight over these matters. “The pre-merger review process is entirely non-public. Unless an early termination is granted.”

A Facebook rep also declined to comment.

Be the first to comment on this article: sign in or register.

Latest Projects from the Profile Hub

Glasgow University College of Arts Knowledge Exchange - communications strategy

20/11/2014
The College of Arts Knowledge Exchange is a leading-edge...

In The Snow Magazine Front Cover

20/11/2014
Front cover from a fashion shoot in Zermatt earlier this...

Cuckoo Design - HeadSpace

17/11/2014
If you want to work through your brand challenges and turn...

Welsh Blood - Precious Concept

17/11/2014
Description The Welsh Blood Service organises the...

Pentland / Ted Baker – AW14 footwear photography

14/11/2014
Pentland is behind some of the world’s best-known sports,...