Facebook Inc (NASDAQ:FB) Gets Second FTC notice Related to Instagram’s Deal

Facebook Inc (NASDAQ:FB) Gets Second FTC notice Related to Instagram’s Deal

Facebook Inc(NASDAQ:FB), the most popular social networking site has received notice from the U.S. antitrust regulators. The U.S. antitrust regulators would give its proposed purchase of the popular photo-sharing app maker Instagram a lengthy investigation, according to the sources on Tuesday.

The company has been requested by FTC to provide with a huge amount of data that the regulators are expected to filter through. This would confirm if the company is biding by the rules, thereby fulfilling the requirements of the antitrust law.

With the growing concerns of the investors about Facebook’s long-term business prospects and rich initial public offering price of $38, the shares of the company slipped below $29 to a new low. The constant screening adds another tension for the company. Despite of the turmoils that the company has been facing, the company announced early in April that it would purchase Instagram for $1 billion in cash and stock, the largest-ever acquisition for the company. This acquisition is crucial on part of the company’s strategy to strengthen its mobile offerings that too at a time when consumers are increasingly accessing the Internet through smartphones. Thus, the purchase of the photo-sharing service on the Internet is vital for the company. Among the other Silicon Valley giants who have been interrogated by FTC are Google and Twitter, who have been asked about the concerns they might have about the Facebook purchase of Instagram.

The “second request” letter from the FTC is dated May 16, Tuesday’s source said. Neither Facebook nor FTC chose to comment on the news.

Shares of FB are down 2.055 to $28.25, off session high of $29.55. The stock made an-time low of $28.14 just a while ago.