Zuckerberg Claims Snapchat’s Growth Would Have Skyrocketed with $6B Buyout Offer Acceptance
In a significant turn of events during Meta’s antitrust trial, CEO Mark Zuckerberg testified that Snapchat’s growth trajectory could have been vastly different if the platform had accepted a buyout offer from Meta back in 2013. This revelation, reported by Business Insider, sheds light on the competitive landscape of social media and the implications of corporate acquisitions.
Meta’s Acquisition Offer to Snapchat
During the trial, court documents surfaced indicating that Meta, previously known as Facebook, proposed a $6 billion acquisition of Snapchat. This offer was significantly higher than earlier reports, which claimed the valuation was around $3 billion. In his testimony, Zuckerberg expressed his belief that Snapchat was not reaching its full potential. He stated:
“For what it’s worth, I think if we would have bought them, we would have accelerated their growth, but that’s just speculation.”
The Implications of the Testimony
The government’s focus on this failed acquisition attempt aims to illustrate Meta’s strategy of maintaining its dominance in the social media sector. According to the Federal Trade Commission (FTC), Meta’s approach has involved acquiring potential rivals instead of competing fairly.
FTC’s Argument Against Meta
The FTC is currently advocating for structural changes within Meta, which may include:
- Restructuring the company to enhance competition.
- Forcing the sale of Instagram and WhatsApp.
- Addressing the issue of illegal monopoly practices.
The agency claims that Meta’s hefty investments in acquisitions were intended to stifle competition and maintain its market power in the social media arena.
Conclusion
This trial marks a pivotal moment in the ongoing scrutiny of large tech companies and their business practices. As the case unfolds, the implications of Zuckerberg’s testimony could reshape the future of Meta and its subsidiaries. For further updates on this developing story, stay tuned to Business Insider and other credible news outlets.
