Facebook-Instagram deal comes under US regulator's scanner
Added On:5/30/2012 11:26:00 AM
Facebook’s latest Instagram acquisition has reportedly come under US antitrust regulator’s scrutiny. According to a latest update, Facebook has received a "second request" from the FTC (Federal Trade Commission) for its Instagram deal. This is significantly a request for relatively large amounts of capital involved in the deal.
As a result, the Facebook-Instagram deal is likely to delay beyond second quarter.
To rewind: the social networking giant Facebook has announced to spend whopping $1 billion to buy the photo-sharing company Instagram. Instagram app will facilitate Facebook users to share photos they snap with their mobile devices. The app has filters that can make user’s photos to look as if they've been taken in the 1970s or through Polaroid cameras.
As per competition experts, the largest deal in Facebook's history, Instagram acquisition is likely to help Facebook to focus more on its core value proposition - community and social interactions around unique visual experiences.
Market watchers added, the latest probe is another headache to the No. 1 social network, whose shares slid below $29, after rich initial public offering(IPO) price of $38. It is found, the delay in Instagram deal approval could ultimately damage Facebook’s reputation in a fast-moving industry.
Any spokesperson from Facebook has denied commenting on the matter. So, stay tuned.
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