Gaming execs: Join 180 select leaders
from King, Glu, Rovio, Unity, Facebook, and more to plan your path to global domination in 2015. GamesBeat Summit
is invite-only -- apply here
. Ticket prices increase
on March 6 Pacific!
Facebook no longer expects its $1 billion acquisition of photo-sharing startup Instagram to close by the end of the second quarter, according to the latest version of Facebook’s S-1.
The social networking titan is facing much scrutiny this week as it readies for its IPO on Friday. The S-1 document, as revealed earlier, indicates Facebook has offered up a potential 50.6 million extra shares with a price range of $34 to $38 per share.
Facebook’s buy of Instagram was seen as a hasty by some who questioned whether Instagram was worth $1 billion. But Facebook’s biggest risk in its IPO is mobile penetration and making sure it can generate revenue from its mobile experience. Instagram, with its more than 40 million users and strong interest from iOS and Android owners shows Facebook is thinking about mobile. Facebook also overhauled its mobile apps yesterday.
The last S-1 issued by Facebook suggested that the Instagram buy would close in the second quarter of 2012, with language saying:
This acquisition is subject to customary closing conditions, including the expiration or early termination of all applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended (HSR), and is currently expected to close in the second quarter of 2012.
The just-released S-1 filing says:
This acquisition is subject to customary closing conditions, including the expiration or early termination of all applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended (HSR), and is expected to close in 2012.
While timing the Instagram deal might not be as smooth as Facebook wanted, there’s almost no doubt it will be worth it to the company to have more opportunities to sell ads to mobile users.
Mark Zuckerberg photo: Jolie O’Dell/VentureBeat
VentureBeat is studying marketing automation
, and we’ll share the data with you.