Breakup of FaceBook

By analogg, May 9, 2019

There appears to be a growing chorus calling for the breakup of FaceBook. How would such a breakup likely affect FB’s stock price?

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Travis Johnson, Stock Gumshoe
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It would be crushed, most likely, since that would presumably mean separating out their fastest-growing business (Instagram) from their core platform… though Instagram might well be more valuable away from facebook than within it. I’d expect heavy regulation will be much more likely than a breakup, though, since “monopoly” would be pretty tough to argue in court… and regulation could hurt margins, perhaps, but it would also probably benefit facebook in that it would protect them from competition (they have a lot more cash than anyone else, and heavy regulation would help to deter the “next facebook” from emerging from… Read more »

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