Twitter and Google questioned by FTC

Posted on May 14, 2012


The US Federal Trade Commission is investigating the purchase of Instagram, the photo-sharing service bought for $1 billion by Facebook. The FTC is also questioning Facebook rivals Google and Twitter, although it doesn’t appear to be certain what information they are looking to gain.

Facebook is hoping to complete the deal with Instagram before the end of June 2012, but some believe that this may not be practical for a deal with this status. The acquisition is part of Facebook’s mobile strategy, especially as smartphones are increasingly being used to access the Internet. Facebook is set to raise up to $12 billion in an initial public offering which may take place very soon. Some believe that the company’s potential for long term growth could be behind the acquisition, as this could affect the IPO. Facebook receives limited revenue from its mobile advertising which could also be a cause for concern.

The initial public offering could be the biggest stock market entry in the world since Google in 2004. The IPO of Facebook is expected to raise up to $100 billion at launch. Facebook has been in existence for eight years and has a membership of 900 million. Mark Zuckerberg will talk to the main buyers to help with their evaluation of the company.

Social networking sites all play a role in any valuable SEO campaign, including Facebook, Twitter and Google. As Facebook has 900 million members, companies all over the world from Chester to California will implement the social networking site into their search engine optimisation strategy.

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