Facebook/Instagram Deal Gets the FTC’s BlessingBy: Josh Wolford - August 23, 2012
Everything looks a-ok with Facebook’s acqusition of photo-sharing app Instagram, according to the Federal Trade Commission. The FTC has just ended their investigation into whether or not the proposed deal violates any laws with a resounding “not that we can see.”
Here’s what the FTC sent to Facebook and Instagram following the decision:
Upon further review of this matter, it now appears that no further action is warranted by the Commission at this time. Accordingly, the investigation has been closed. This action is not to be construed as a determination that a violation may not have occurred, just as the pendency of an investigation should not be construed as a determination that a violation has occurred. The Commission reserves the right to take such further action as the public interest may require.
In short, carry on for now. This is just another (huge) hurdle that the deal had to clear, and it looks like its well on its way to completion at this point.
“The Federal Trade Commission has closed its nonpublic investigation of Facebook’s proposed acquisition of Instagram, Inc., without taking any action. Accordingly, the deal may now proceed as proposed,” they said in a release.
The vote to close the investigation was unanimous, at 5-0.
Facebook’s offer to Instagram was roughly $1 billion. But since the deal included 23 million shares of Facebook stock (and we know how that’s been going lately), the Instagram founders are out nearly $300 million dollars.