Facebook's Instagram buy could be delayed by FTC, report says
- 11 May, 2012 08:42
The U.S. Federal Trade Commission has launched a probe of Facebook's proposed acquisition of Instagram that could delay the closing of the deal, the Financial Times reported Thursday.
Most mergers valued at more than $66 million must be reported to the FTC, and preliminary reviews by the agency are common. But the investigation of Facebook for any competition issues could upset its plans to close the deal by the end of the second quarter, the FT reported.
Maxwell Blecher, an antitrust attorney with Blecher & Collins, said an antitrust probe would likely take at least a month.
"If they go into it further and they issue additional requests for information, that could probably take up to six months," he told IDG News Service.
The FTC has already collected information from at least two of Facebook's largest competitors, according to the FT report, which cited unnamed sources. Facebook will not be able to integrate Instagram's service with its social networking platform before the deal is finalized, the FT said.
That delay could hurt Facebook's efforts to strengthen its mobile strategy. Facebook's has said in regulatory filings that its revenue will suffer as users increasingly access its service from mobile devices rather than PCs.
The increase in mobile usage has resulted in its daily user base expanding more quickly than the number of advertisements it delivers, Facebook said in amended S-1 filing with the Securities and Exchange Commission Wednesday.
"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," the filing states.
Facebook announced last month that it planned to buy Instagram for about $1 billion in cash and stock. Competition experts believe the deal will ultimately be approved, the FT reported.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
Larry Page wants to see your medical records
Dual-Persona Smartphones Not a BYOD Panacea
After two-year hiatus, EFF accepts bitcoin donations again
CIOs struggle to deliver timely mobile business apps: survey
Spiceworks' free management software gets integrated MDM
Hybrid IT Service Management: A Requirement for Virtualisation and Cloud Computing
When competition is tough and resources are limited, corporate leaders are depending on growing their existing capabilities in order to grow their business. Information technology can be a unique catalyst for business growth, delivering a competitive advantage when creatively applied to established and emerging problems. Read more on what trends are accelerating the value of IT.
Endpoint Security and Virtualisation
Besides form factor, virtual systems are not really that different than physical systems. They both use the same operating systems and applications. They both present users with computing resources such as RAM and hard drives. Consequently, the ability to exploit vulnerabilities in a physical environment will present a significant threat to virtualised environments as well. This paper examines the different endpoint security methods for virtualised environments and presents how Endpoint Protection security provides optimal performance, protection and manageability.
Top 10 tips for Migration
As users bring multiple devices to the workplace, IT departments need to have a single view of all their mobile devices. Find out how to build a secure and reliable management platform for next generation mobile computing across multiple platforms. Click for more!