FTC asks Google, Twitter about Facebook's Instagram buy (rumor)

Summary:The Federal Trade Commission's investigation into Facebook's purchase of Instagram has begun. The organization has already started talking to Google and Twitter, according to a recent rumor.

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.

As for Twitter, there was definitely interest. Not only did Facebook beat Twitter to Instagram, but Instagram used Twitter to make Facebook pay more, according to rumors.

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.

See also:

Topics: Google, Social Enterprise

About

Emil is a freelance journalist writing for CNET and ZDNet. Over the years, he has covered the tech industry for multiple publications, including Ars Technica, Neowin, and TechSpot.

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