FTC Launches Probe Into Facebook's $1 Billion Instagram Acquisition
May 11, 2012 10:37 AM
comment(s) - last by
Facebook said it would pay Instagram a $200 million termination fee if the FTC blocked the deal
The U.S. Federal Trade Commission (FTC) is looking to investigate Facebook's acquisition of photo sharing program Instagram only one week before the
social network's massive IPO
According to the
, the FTC is launching an investigation regarding Facebook's Instagram acquisition in an effort to identify any clues of anti-competitive practices. The FTC isn't just picking on Facebook, though. The probe is common for any acquisition over $68.2 million because this number is tied to inflation.
Despite the probe being a routine practice, it could potentially hurt Facebook for the time being. The social network cannot use Instagram until the investigation is closed, delaying the mobile services it desperately seeks. In fact, some reports say the probe could take six to 12 months before completion.
Last month, it was reported that Facebook was interested in acquiring Instagram for $1 billion in cash and stock. The move aims to increase Facebook's mobile usage, since the company's amended S-1 filing with the Securities and Exchange Commission on Wednesday mentioned that Facebook revenue will decline as more user's access the site from mobile devices instead of PCs.
The filings also said that the boost in mobile usage has led to a user base that is expanding faster than the number of advertisements provided.
"If users increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, or if we incur excessive expenses in this effort, our financial performance and ability to grow revenue would be negatively affected," said the filing.
In addition to mobile woes, Facebook is looking to go public with its
$100 billion initial public offering on May 18
and likely didn't need the extra trouble only one week before establishing its ticker symbol "FB."
Facebook said it would pay Instagram a $200 million termination fee if the FTC blocked the deal.
This article is over a month old, voting and posting comments is disabled
RE: Why instagram?
5/14/2012 10:51:13 AM
You're missing the point. Goldman's telling their clients to not short, or otherwise they wouldn't go long in the first place. If somebody is planning to short why buy the stock itself at all?
It's blatant fraud. We've long since moved past the point that anybody's even trying to hide anything, since by now most people are guillible enough to belive what other people "in charge" say over the facts at hand.
Take a look at this little gem:
Now you tell me if you can trade at that speed. Because you can be damned sure that, once the stock price has dropped below what it's actually worth and goldman has made their money on shorts, they will buy the stock itself at those speeds. And since other companies have trained their bots to buy whatever goldman buys, the price will shoot up again.
But in this world of milliseconds, whoever's closer to the stockexchange's datacenter wins, and goldman has won that race by a mile. They're right next door. So, once the stock has gone up, all they need to do is short their own position right before they sell the stock again. Price goes down, they make money off the stock, and money off the short. Before they rebuy at lows.
Pure and utter genius. It's also fraud on the level of high treason. But still genius, since they have already gotten away with it.
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
Facebook to Go Public May 18
May 2, 2012, 1:47 PM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information