Earlier this week we learned The Federal Trade Commision (FTC) is conducting a routine investigation into Facebook's planned acquisition of Instagram. It could take anywhere from six to 12 months, meaning Facebook likely won't close the deal when it was expecting to (this quarter).
The FTC has already reportedly started talking to Facebook's competitors. It has approached both Google and Twitter, according to a source cited by Reuters.
Rumor has it that Google wasn't crazy about Instagram like Facebook was, but there was definitely some interest. On a related note, I thought there were some parallels in the deal to one from 2006: 10 ways Instagram is to Facebook as YouTube was to Google.
Last month, Facebook announced plans to acquire Instagram for approximately $1 billion in cash and stock, although Instagram reportedly wanted $2 billion from Facebook. The price ended up being much more flexible: Facebook paid $300 million in cash and 23 million shares for Instagram, and there's a $200 million break-up fee if the deal doesn't go through.
First thing is first though: Facebook is widely expected to go public next week. The most recent rumor says this Friday is the big day. Shares are expected to be priced on May 17, with trading beginning on May 18. Months later, we'll be hearing about Instagram again.
- Facebook IPO: Instagram worth up to $1.1 billion
- Facebook buying Instagram for $300 million, 23 million shares
- Instagram co-founder turned down a job from Mark Zuckerberg
- 10 ways Instagram is to Facebook as YouTube was to Google
- Facebook still has the cash to buy many more Instagrams
- Instagram now top iPhone app
- Bet on Facebook's next buy: Foursquare? Dropbox? Pinterest?
- Why Facebook acquired Instagram for $1 billion