Facebook's purchase of Instagram could be delayed

The announcement that Facebook was going to acquire Instagram, the company behind the popular photo altering and sharing software app, hit the Internet like a ton of bricks a month ago. The main reason was due to the whopping $1 billion price tag. Furthermore, Facebook founder and CEO Mark Zuckerberg personally handled the deal without telling the company's board of directors beforehand.

Now there's a new report that the acquisition could face a delay. The Financial Times (paid registration required) reports that the Federal Trade Commission has now launched a probe of the deal. Such an investigation could cause the acquisition to be delayed beyond the previously announced plan to close it by the end of the second quarter.

So far, neither Facebook nor the FTC have confirmed that such a probe is taking place. However, the Financial Times report, which cites unnamed sources, claims that the FTC has gone ahead and collected information from two unnamed competitors to Facebook as part of their probe.

For his part, Zuckerberg has already stated his continued enthusiasm for the Instagram deal. During the recent "road show" appearance in New York City to promote the upcoming Facebook IPO to investors, Zuckerberg stated, "I'd do it again" when asked about the Instagram purchase.

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"Facebook founder and CEO Mark Zuckerberg personally handled the deal without telling the company's board of directors beforehand."

Thats always going to go down well with a board of directors isnt it?! - I am glad to see hes dropped himself in poop!!

I don't get it. Why would any company pay $1bn for an app that makes photos look retro? Still, if Facebook wants to make stupid purchases then what do I care? I can't see any regulatory delay as, well, it's a remarkably pointless purchase that is pretty irrelevant in terms of the market.

This is likely a few Facebook owners twisting the arms of their local bought and paid for US congressmen. I don't see how they could actually block this profoundly stupid purchase.

So now the FTC are going to bail Zuckerburg out of his stupid purchase?

This is just the the movie, he is not a responsible to run a company, who in their right mind blow $1 billion without telling the board, let alone on a purchase that is not even valued anywhere near that. The Facebook IPO will be the highest overvaluation in history. Yes Facebook is very valuable, practically having every person on Earth signed up, but as valuable as this is, they are just going to inflate it past the value of the universe.

The bubble's going to burst. Investors will lose billions. Facebook will live on under another company, but it will be the biggest scandal/financial collapse since Enron.

Simon- said,
So now the FTC are going to bail Zuckerburg out of his stupid purchase?

This is just the the movie, he is not a responsible to run a company, who in their right mind blow $1 billion without telling the board, let alone on a purchase that is not even valued anywhere near that. The Facebook IPO will be the highest overvaluation in history. Yes Facebook is very valuable, practically having every person on Earth signed up, but as valuable as this is, they are just going to inflate it past the value of the universe.

The bubble's going to burst. Investors will lose billions. Facebook will live on under another company, but it will be the biggest scandal/financial collapse since Enron.

Good!

Simon- said,
So now the FTC are going to bail Zuckerburg out of his stupid purchase?

This is just the the movie, he is not a responsible to run a company, who in their right mind blow $1 billion without telling the board, let alone on a purchase that is not even valued anywhere near that. The Facebook IPO will be the highest overvaluation in history. Yes Facebook is very valuable, practically having every person on Earth signed up, but as valuable as this is, they are just going to inflate it past the value of the universe.

The bubble's going to burst. Investors will lose billions. Facebook will live on under another company, but it will be the biggest scandal/financial collapse since Enron.


The bubble will burst, but it won't be because of Zuckerberg's reckless affairs.