Facebook tries to speed Instagram deal

Facebook is seeking to expedite the payout of its Instagram acquisition before the deal closes by using an obscure California law to issue stock without registering it with the Securities and Exchange Commission.

The tactic is intended to save the company time and money as it issues shares once valued at $700 million to Instagram’s dozen employees and early investors in the photo-sharing application. Those shares are now worth $487 million, with Facebook’s stock price off 44 percent since it began trading in May. By going through the state of California rather than the federal government, Facebook may also insulate the deal from scrutiny around Facebook’s flawed public offering.