Facebook has been permitted to officiate its acquisition of Instagram by the US Federal Trade Commission (FTC), but the deal is now said to be worth US$747 million, down from the original $1 billion settlement announced earlier this year.
Facebook first revealed its plans to purchase Instagram in April for a reported US$1 billion, after which the FTC launched an antitrust investigation, barring the social network from brokering the deal with the photo franchise.
The FTC has now approved the takeover fourth months later, but the US$1 billion deal has dropped by US$253 million, to a reduced cost of US$747 million.
The value decline is said to have occurred because originally, Facebook had intended to buy Instagram with a split payment of US$300 million in cash and 22,999,412 in stock. Since then, Facebook’s stock value hasn’t fared as well as expected since going public this year; currently the company’s stock is valued at around US$447M. That, combined with the US$300 million cash reserve means the total purchase price now sits at US$747 million.
Following the all-clear from the FTC, Facebook can process the acquisition straight away. For users concerned about how this will affect Instagram, Facebook has confirmed that the photography site will be kept up and running as normal in the interim.