Any chance they'll get the same offer in 6 months? I doubt it.
I think Instagram is shrewd enough they could parlay this into an even bigger deal if they had an opportunity to.
What is probably the biggest concern is being ham-strung for six months. If Facebook had plans for Instagram then it would be hard to work on "new" things if they didn't matter in the long run because they duplicated what Facebook already has.
I suspect the FTC is looking long and hard at the Andreessen Horowitz connection. Even if Marc recused himself, the price tag being 1000x the companies actual "value" (think sane business people outside the valley here) and the fact that FB took out a loan against its IPO income to fund the deal both scream dirty dealings to investigators.
Edit: When Mark Zuckerberg found himself throwing down a billion dollars to have what a company he wanted, did he ever once seriously consider that he couldn't have it as soon as he wanted?
Right.
That this happens now is a crime against Facebook which it does you no good to be so smuck about.
Some recent examples on the Google side:
AdMob - announced November 9th, 2009, FTC approval May 21st, 2010
ITA - announced July 1, 2010, FTC approval April 8th, 2011
AdMeld - announced June 13th, 2011, FTC approval December 2nd, 2011
(Each of those acquisitions were for less than Facebook's paying for Instagram, although the decision to investigate isn't just based on money.)
This is why large acquisitions usually include a breakup fee in case they don't go through.
Assuming the report of a second request is true, this is quite problematic for Instagram. Once a process like this is underway, the outcome is inherently uncertain. They will be left twisting in the wind for many months. It is an absolutely awful place to be, both strategically and psychologically.
For Facebook, as well: expect various "helpful third parties" to work behind the scenes to convince the regulators to impose onerous conditions on Facebook as part of a consent decree to "ensure consumers are not harmed by the deal;" this is one of the few mechanisms by which competitors can damage Facebook without needing to compete with them successfully in the market. (Ironic, isn't it?)
This also means that the integration of Instagram's technology into Facebook's platform will not begin for many months. Once such a review is under way, the two teams cannot collaborate other than superficially; doing otherwise is known as "gun-jumping," and can lead to not only the deal being scuttled, but additional penalties as well.
(BTW, the DOJ reviewed the acquisition of ITA Software by Google, not the FTC. They are entirely different entities, and often squabble with each other over who gets to prosecute a given case.)
Wonderful. Private business picks up the government's tab for training?
It's sad to see people so easily "realize" such sad things because they read a rumor posted on a website by some guy
This is similar to projecting an athlete's career... Zuck is gambling quite a bit that instagram is a real stud, but there is always the reality that insta could be a dud long term. Regulators are going to be more concerned with deals that could disrupt current markets. What market has instagram created or dominated? (I don't consider sharing pictures a market)
If Zuck has the Clairvoyance to see something here that will generate a strong return on $1,000,000,000 despite the enormous risk, then I see no reason to not let this deal go through.
