Facebook given green light by state to acquire Instagram

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Facebook given green light by state to acquire Instagram

Facebook received approval from the California Department of Corporations for its planned acquisition of Instagram, helping clear the way for the world’s most popular social network to complete the purchase.

Facebook can issue shares to buy the mobile photo-sharing application, said Rafael Lirag, hearing officer at a fairness hearing in San Francisco yesterday.

The deal is “fair, just and equitable,” and a permit will be issued to enable the share transfer, he said.

The U.S. Federal Trade Commission granted antitrust approval for the acquisition last week. The deal, which includes about 23 million shares and $300 million in cash, is valued at about $740 million.

Facebook is buying Instagram to bolster its presence on mobile devices, where it needs to boost advertising dollars.

Facebook gets more than half of its users from wireless devices such as smartphones and tablets, yet growth in mobile advertising has not kept pace with the surge in members.

Bloomberg

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