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