On Thursday, the U.S. Federal Trade Commission announced that the FTC has officially closed its nonpublic investigation of Facebook’s proposed acquisition of Instagram, Inc.
The FTC has decided against taking any action. Accordingly, the deal may now proceed as proposed.”
The Commission vote to close the investigation was 5-0.
As MMW covered at the time of the deal’s announcement, Facebook agreed to acquire the popular photo sharing platform for a whopping $1 billion, which includes roughly 23 million shares of Facebook stock.
Unfortunately, between April (when the deal was made) and today, Facebook’s share price has fallen substantially. As a result, the value of the Instagram acquisition has tumbled from $1 billion down to $747 million.
In other words, the shares of stock offered to Instagram as payment have lost $253 million in value since the acquisition was agreed to by both parties during the spring.