Facebook can swallow Instagram
Good news for Facebook: The relevant U.S. FTC has approved the acquisition of the photo service Instagram. The FTC has been no objections, they are known. The photo service is to be maintained until further in its current form, Facebook had stated.
Facebook announced the Instagram purchase in April, even before the IPO, which was followed in May. A purchase price of around $ 1 billion had been agreed upon. The Instagram founders are now, however, have to compromise: because they had agreed to it, partly paid shares in Facebook to be.
Only $ 300 million in cash flow, complemented by 23 million Facebook shares. Which were at the time of negotiations with Instagram valued at approximately $ 30. Meanwhile, the paper but costs just over $ 19 - which is currently the purchase would generate about 740 million dollars. The final closing of the transaction is still pending, this past Wednesday, the Facebook share closed New York trading at 1.46 percent in positive territory at 19.44 U.S. dollars.
For Instagram-owner, it was a bet: Before the IPO, the valuation of Facebook spiraled ever further into the air, until the issue price remained at $ 38 per share. The IPO itself was accompanied by technical glitches, were added worries about a slowdown in growth. The collapse of the course began on the second trading day.
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