Social networking giants Facebook $1 billion acquisition of photo sharing app Instagram could be delayed with the federal regulators looking into the social network’s acquisition of Instagram. British newspaper FT is revealing that the FTC is investigating the deal for possible antitrust issues. Given that, from what we learned exclusively a few weeks ago. The Instagram deal could be under the microscope for anything from six to twelve months. It could be well into 2013 before the dust has settled. Facebook had previously said that it hoped to close the acquisition before the end of July 2012.
It’s been said that FTC is allegedly asking some of Facebook biggest competitors – we are seeing the likes of Google and Twitter. Zuckerberg’s Facebook paid Instagram $300 million in cash as well 23 million shares of common stock. Facebook is tipped go public on May 18 with a starting price range of $28-$35 per share, Instagram stands to get between $644 million and $805 million from the second the bell rings on the 18th. If the FTC blocks the deal, Facebook will pay out a $200 million breakup fee, as specified in the social network’s amended S-1 filing. What do you think? Sound off in the comments below.
