Shares of Facebook Inc(NASDAQ:FB) have been showing
increased selling at every rise. On Tuesday the stock ended lower by 5.65% to
$20.38 after reaching high of $24.54 earlier this week. The stock has almost
lost half of its market cap since its debut in May.
Can FB Rebound
Now? Get Our Special
Report
There's good news and bad news, depending on which end
of the receiving line you are on. The good news is for Facebook, whose purchase
of imaging company Instagram for $1 billion has been approved by regulators in
the United Kingdom.
On Tuesday, U.K.'s Office of Fair Trading gave the
go-ahead for the deal, without referring to it to wider authorities. Earlier it
had expressed apprehensions that the acquisition could be monopolistic and
restrict the ability of other services to compete with Instagram.
"The OFT has decided, on the information
currently available to it, not to refer this merger to the Competition
Commission under the provisions of the Enterprise Act 2002," the trading
standards body said in a statement on its website.
The main concern of the trading standards body had
been that the merger could limit people from using other photo apps on Facebook
or could prevent the uploading of Instagram images on other similar sites.
However after investigating the deal it found that
while both the parties had the required technology to impose those restrictions
there was no incentive for the to do it.
This is indeed good news for the social networking
site that has seen its stock being battered under slew o negative news. Now it
has to wait for the approval of the Federal Trade Commission in the United
States.
Now for the bad news and this is Zynga
Inc(NASDAQ:ZNGA) which is at the receiving end of it.
Last month while reporting its second quarter results
game developer Zynga had tended to blame its ally Facebook for its poor
financial performance and the changes on its site, that prevented users from
finding and playing its games.
How can
Investors Make Money By Trading FB, Find Out Here
Facebook has however scotched that theory saying that
game-playing on its site had actually risen. At a game-developers conference in
Europe Facebook executive said that more than 235 million users played games on
its site, up from 205 million a year earlier and compared to 217 million at the
start of 2012.
No comments:
Post a Comment