May 29 Facebook has received notice that
U.S. antitrust regulators will give its proposed purchase of the
popular photo-sharing app maker Instagram a lengthy
investigation, an industry source told Reuters on Tuesday.
Facebook has received a "second request" from the Federal
Trade Commission, essentially a request for relatively large
amounts of data that the regulators will sift through to ensure
that the deal complies with antitrust law.
A prolonged review adds another headache to the No. 1 social
network, whose shares on Tuesday slid below $29 to a new low as
nervous investors continued to show their concerns about
Facebook's long-term business prospects and its rich initial
public offering price of $38.
Facebook announced in April that it would purchase Instagram
for $1 billion in cash and stock, in its largest-ever
The "second request" letter from the FTC is dated May 16,
the source said.