Facebook received approval from US authorities to take over the photo-sharing application Instagram in a bit of good news for the social-networking company, which has seen its stock lose half its value since its market debut.
The Federal Trade Commission, which investigates allegations of antitrust practices, said Wednesday that it closed its investigation of the deal without taking action, allowing the acquisition to be completed.
Facebook announced the purchase in April ahead of its initial public offering the next month. A price of 1 billion dollars was agreed, but the Instragram founders agreed to be paid in part in Facebook stock. Because of Facebook's falling share price, the deal is now valued at 740 million dollars.
Instagram is a popular application on smartphones. It allows users to take photos with the devices, run them through filters and then share them with other Instagram users.
Facebook sought to buy the company to bolster its presence on mobile devices, which is seen as a weak area for the California company.
Its stock has been hammered because investors do not project it pulling in the revenues to justify its stock price.