Facebook, Instagram deal captures FCC approval

Deal worth $747 million

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Facebook got some good news Wednesday amid sinking stock prices and calls for Marc Zuckerberg's head by ticked off investors.

The social media megalith's bid for photo-sharing site Instagram was approved by the Federal Trade Commission, sealing the deal with the conclusion of the agency's standard-procedure investigation into the acquisition.

While Facebook is probably excited to get the government's go-ahead, Instagram might be a little glum over its final selling price.

The deal, initially valued at $1 billion (£629 million), dropped to a mere $747 million (£470).

Facebook will payout $300 million (£188) in cash with the remaining $447 million (£281) coming in the form of stocks based on the company's current trading value of $19.44 (£12.24) a share.

Thanks to the FCC's 5-0 approval, the two sites can begin integrating their services.

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Facebook has to hope Instagram brings it some bucks as the company is facing investor pressure to produce some hard cash (sorry, Farmville bucks).

The company rolled out a sponsored results feature Wednesday it announced earlier this year. Now, when users look up a friend, place, page, etc., paid sponsor results are interspersed with the search content.

The feature comes at a time when Facebook is exploring other advertising options, like traditional banner ads, as its stock falls to half its initial IPO asking price.

Though only a one-month test run, search result ads could become a permanent fixture on the site if they generate enough revenue - and brand awareness - for the sponsors.

Via TechCrunch, CNET (1), (2)