Facebook faces possible FTC injunction
The company’s shares dropped on the report, closed 2.7% lower on Thursday
Stocks impacted: Facebook Inc (FB)
Facebook shares came under a decent selling pressure on the news that the Federal Trade Commission is considering seeking a preliminary injunction against the company, citing antitrust concerns. In particular, the FTC is reportedly going to ask a court to stop Facebook from moving ahead with plans to integrate its WhatsApp, Instagram and Messenger subsidiaries. Against this backdrop, it seems that chances are growing that the company may be forced to sell WhatsApp and Instagram, which in turn will hurt its financial position as these two acquisitions are profitable and fast-growing. As a reminder, Facebook has plans to allow users of its units Messenger, WhatsApp and the direct messaging system within Instagram to communicate with each other. Of note, the company intends spend $130 million over six years on its content oversight board.
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