Controversy over Facebook Instagram $1-billion deal, what does it mean? 

If the rumors are true, then it looks like Facebook‘s $1-billion buyout of free photo-sharing service Instagram is under review by the U.S. Federal Trade Commission. The social network  Facebook announced last month that it planned to buy Instagram for about $1 billion in cash and stock. It could upset plans to close the Facebook-Instagram deal by the end of the second quarter.

According to pril Dembosky wrote at the Financial Times, Deals for more than $66 million typically undergo greater regulatory scrutiny, under current antitrust law. The routine competition investigation could take six months to a year.

Michael Pachter, an analyst for Wedbush Securities even criticized Mark Zuckerberg for his fashion sense and hoodie “Mark and his signature hoodie: He’s actually showing investors he doesn’t care that much; he’s going to be him,”.

The social network Facebook integrate Instagram into its site until after its gets approval from regulators. If the Facebook-Instagram $1-billion merger is not completed, company has promised to give Instagram $200 million for its troubles.

Instagram

About the author: Hendrik L Clarke

Features Editor, a senior director of strategic planning for a major university, has experience at a long/short equity hedge fund and has been in the markets for just under a decade. He has degrees in Economics and Communications and focuses on macro themes in the markets. His background also extends to logistics, marketing, and e-commerce.