Facebook's $1 bln Instagram deal may get US regulatory approval by mid-August

New York, July 9 (ANI): Social networking giant Facebook's controversial one billion dollar purchase of photo-sharing website Instagram is going to gain U.S. regulatory approval probably by mid-August, a source familiar with the matter has claimed.

"The FTC does not have the stomach to hold it up longer," the source said.

In May, Facebook said the Federal Trade Commission (FTC) had issued a second request saying it needed more time to study the proposal, The New York Post reports.

The deal stirred controversy after Instagram called itself a photo sharer on smartphones, a description that didn't sit well with critics who argued that because Instagram's 50 million users can also upload to Facebook and its rivals that it's closer to a social-networking site.

Instagram a few weeks ago added a feature allowing users to post "photo-likes" to their Facebook account without quitting the app.

Meanwhile, Sam Hamadeh, chief executive of market research firm PrivCo, said there would be a stock "relief" bump when approval becomes clear.

"It will remove some uncertainty in Facebook's stock because it [the Instagram purchase] happens to address the one area of concern for investors which is mobile, plus Facebook is on the hook for 300 million dollars [in breakup fees] if it doesn't go through," Hamadeh said. (ANI)