Facebook Acquisition of Instagram Determined 'Fair, Just, and Equitable'

The Facebook acquisition of Instagram has been determined as 'fair, just, and equitable', reports TechCrunch.

The acquisition had already been approved by the Federal Trade Commission; however, Facebook was still waiting for a California Department of Corporations "fairness" ruling on the issuance of 23,000 shares to close the deal.

The department issued the following statement today:


The Department of Corporations determined Wednesday that the terms and conditions of Facebook Inc.'s acquisition of Instagram Inc. are fair to the Instagram shareholders and the Department will issue a permit that authorizes Facebook to issue stock for that acquisition. This determination constitutes the final regulatory approval required for the acquisition. Formal approval by Instagram's shareholders must still occur.

"Our role as the State's securities regulator is primarily to determine whether the transaction is fair to Instagram's 19 shareholders and the proposed exchange of securities meets that test," said Corporations Commissioner Jan Lynn Owen.

The drop in Facebook's stock value has reduced the value of the deal from $1 billion to around $700 million.

You can download Instagram from the App Store for free.


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