Breakingviews

Facebook’s defensive Instagram M&A raises red flag

April 9, 2012

Online photos are supposed to be a core Facebook competence. Paying $1 bln for the picture-sharing app may boost the social network in mobile. But paying over the odds for revenue-free rivals is usually what anxious, mature firms do - not growth companies seeking to go public.

Facebook infected by Google’s antitrust limbo

April 23, 2012

The social network isn’t even public, yet acquisition targets may already be concerned. Instagram commanded a 20 pct break fee if its $1 bln sale isn’t consummated by December. That’s a wise safety measure given the life cycle of apps and Facebook’s lurking antitrust risks.