The UK's merger and acquisitions regulator has cleared Facebook to snaffle up photo filter Instagram. Imagine the sighs of relief at the social network when the watchdog ruled that the $1bn acquisition won't affect competition. The Office of Fair Trading said there was no need to refer the proposed deal to the Competition …
And instagram are hoping that the deal completes before facebook comes to its senses...
"And instagram are hoping that the deal completes before facebook's BOARD comes to its senses..."
There...fixed it for you.
It is quite clear that Marky-Poo has no sense.
More fixing required
"And instagram are hoping that the deal completes before facebook's stock plummets further..."
Over-inflated company with no actual product and small income stream buys other over-inflated company with no actual product and no income stream. Woo.
Remind me why Facebook is worth the same a Boeing?
"Remind me why Facebook is worth the same a Boeing?"
Because it turns out populist crap and it's american?
Because of all that money we give Facebook. I mean, I must have spent a fortun... actually. No. I haven't. And I have ad-blockers. And I don't click ads. And I upload a ton of crap onto there for family to see, including hefty-sized videos of my kid walking in circles. And I played a game or two until they started asking for "points" or money.
And... hell, I don't know why. Apparently because "someone said so". Let's see how this pans out. At one point FriendsReunited was "worth" hundreds of millions of pounds. Be good to know where all that came from because it depreciated like mad once Facebook took off and never seemed to do anything to make its money back for anyone.
Ah come on, a piece of software counts as a product.
Even if you're giving it way for free.
And it doesn't do anything new or revolutionary.
It's still a product, it's just a worthless one.
Instagram the natural home for the "titties'n'kitties" photography crowd!
Sold! I will sign up now.
What jurisdiction does the UK have over two US companies? If they'd said it WASN'T OK, what difference would it make?
They might both (or just Instagram perhaps) have UK offices so it would mean a uk subsidiary of the US parent being bought?
Instagram was like 2 people so I doubt it!
Given that there are a handful of Facebook Ltd's in Companies House and one of them is registered to a HUGE accountants in Egham, who seem to serve all sorts of international clients tax needs, I'd guess that the UK has not only jurisdiction but the ability to - for example - stop all UK advertising payments getting to the company. Probably even EU, depending on where their other offices are and how far it goes up the legal chain.
And outside of that, it would still be of interest to the EU (of which the UK is a member) for a huge corporation doing business in Europe with their own money-handling facilities (you can now "buy" things on Facebook, don't forget) whether they are on-shore or not - especially when it comes to potentially anti-competitive actions that would impact on UK/EU competitors.
It's like saying "What right does the EU have to fine Microsoft and order it to do things?" As it turns out, all the right in the world (or at least the EU).
They trade here. They accept money from here. They provide service to here. They advertise here. They pay tax here. They affect competition here. That's what jurisdiction they have.
Having all your EU income suspended, your finances audited, your tax affairs inspected, your company fined or suspended, banking outfits forced to freeze your accounts or stop processing your transactions etc. because you failed to properly consult on an anti-competitive takeover would actually hurt quite a bit. Probably more than the equivalent in the US because some people forget we actually do a lot more business collectively as the EU than the US alone does.
A clear case of nothing to see here
Somebody must have referred it to them though the Office of Fair Trading is not the right department: it should be the Monopolies & Merger Commission. But as it's non-domestic the EU's Trade Commissioner is responsible. Note that jurisdictions are rather flexible as the recent fine of S&C by the New York bank regulator shows: Federal restriction so Federal regulator responsible (there basically isn't one and as S&C isn't listed in America the SEC can't investigate. But, if you're market is big enough, you make the rules as AOL, Honeywell-Bull, Microsoft and Oracle have demonstrated. Can't wait until the Chinese really catch on to the idea, ProView was just the beginning.
So over instagram now. It was good, but there are much better editors out now and I never cared for the social aspect anyway.
Full steam ahead zuck!
I love the way this is posted under Small Biz. Yeah cos it was like only a Billion Dollars
Whiskey Tango Foxtrot
Really? A billion dollars. Well I guess it is the world's première collection of sepia-toned photos of salads and sunsets.
But come on. A billion? They know that's more than a million?
> Still caring about a few orders of magnitude of dollar amounts
Is there any truth to the rumour that Zuck is paying them $1 in cash, and the rest in FB shares?
Tip for Instagram: Tell Zucker, "Er, we'll just take a cheque, thanks."
Would love to see the image where Zuck turns up with a loo roll! ;)
FB board to Zuck after visiting the pointless websites in obvious decline sale...
- "You paid HOW MUCH?"
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