Reports surfaced earlier this month that the U.S. Federal Trade Commission (FTC) had begun a probe into Facebook’s proposed $1 billion acquisition of Instagram. No specific reasons were given for the FTC’s probe, but the acquisition was reportedly stalled due to antitrust concerns. It will likely take regulators up to a year to determine if the deal violates U.S. antitrust law.
Facebook will pay Instagram $200 million if the deal falls through. If the FTC approves the acquisition, Instagram’s two co-founders will net $500 million combined.