Next week Facebook has a fairness hearing on the transaction but that hearing could only delay the deal, not squash it completely, says the New York Times Dealbook.
Th hearing with California’s Department of Corporations was scheduled for August 29.
If approved, Facebook could have issued the shares the next day, using a California law that lets them issue shares without SEC approval.
Facebook and Instagram announced the deal in April. In May, the FTC had issued a second request for information. But in the end, the agency had no objections to the deal. The vote in favour of the deal was unanimous.
Facebook agreed to buy Instagram for $300 million in cash and just under 23 million shares. At the time, that was worth $1 billion. At the IPO price, Instagram became worth $1.2 billion. Now, the deal is valued at about $740 million.
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