Printed from http://www.electronista.com

Facebook purchase of Instagram cleared by FTC

updated 06:51 pm EDT, Wed August 22, 2012

Move follows release of deal by UK Office of Fair Trading

In a 5-0 vote, The Federal Trade Commission has voted to close the investigation of Facebook's acquisition of Instagram. The FTC has chosen to do nothing to block or otherwise hinder the merger, but reserves the right to "take such further action as the public interest may require." Mark Zuckerberg claims that Instagram will still share content out to non-Facebook sites, and it would still be possible to add and share with friends who aren't connected even after the merger.

"We're committed to building and growing Instagram independently," Zuckerberg said. "Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people."

Zuckerberg added that the buyout was a very rare deal for the sheer size of the user base, with over 30 million users even before Instagram's Android version appeared. He even suggested this may be one of the last of its kind for Facebook. "We don't plan on doing many more of these, if any at all," he said.

Earlier this month, the UK-based Office of Fair Trading (OTC) , a rough equivalent of the US FTC, allowed the deal to continue. The OTC "does not believe that it is or may be the case that the merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom."

The deal is slated to cost Facebook $300 million in cash, and 23 million shares in Facebook stock. When the deal was announced, the cash value of the transaction was $1 billion. At today's close of $19.44 per share, the deal is now worth $747.1 million dollars, a more than 25 percent drop in value.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Adesso Compagno X Bluetooth keyboard

The shift from typing on physical keyboards to digital versions on smartphones and tablets hasn't been an easy for many consumers. Fro ...

Polk Audio 4 Shot headset

Sound quality and design are two of the biggest areas of focus for manufacturers when coming up with a new gaming headset. Depending o ...

Patriot Supersonic Phoenix USB 3.0 drive

USB thumb drives aren't the end all solutions for data transfer and traveling needs. Sometimes people want something with a little mor ...

Sponsor

toggle

Most Commented

 
toggle

Popular News