California gives green light to Facebook's Instagram acquisition

Following last week's Federal Trade Commission approval of the Facebook-Instagram deal, the California Department of Corporations has also given the green light to the social network's proposed acquisition.

Los Angeles Times reporter Jessica Guynn tweeted the note of approval this morning.

"As expected, Facebook cleared to buy Instagram 'the transaction appears fair, just and equitable,'" Guynn cited the Department of Corporations as ruling.

Mark Leyes, director of communications at the California Department of Corporations confirmed the news to TechCrunch, meaning Facebook has cleared perhaps its last hurdle in its purchase of the photo-sharing site.

Facebook announced its purchase of Instagram in April, just days after the photo service launched its much-anticipated Android app. Terms of the deal were estimated at $1 billion (£631 million), though Instagram itself cast doubts on that figure.

"The billion dollar valuation headline was something generated from the press," Instagram founder Kevin Systrom said during a hearing, adding that internally at Instagram "we were always talking percentage of Facebook outstanding stock plus a cash consideration."

In the months since the acquisition was announced, Facebook's IPO shares have dropped from $38 (£24) each to $20 (£12), according to the Wall Street Journal, reducing the total acquisition price down to the equivalent of about $750 million (£474 million).

The social network has focused for years on "building the best experience for sharing photos with your friends and family," Facebook CEO Mark Zuckerberg said in a statement at the time the deal was announced. The acquisition will "offer the best experiences for sharing beautiful mobile photos with people based on your interests," he added.

Earlier this month, the UK Office of Fair Trading also approved the deal.

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