China Wants to Acquire $1.2 Billion Stake in Facebook, Should You Be Concerned?
China Wants to Acquire $1.2 Billion Stake in Facebook, Should You Be Concerned?
Posted 07/05/2011 at 10:17am
| by Paul Lilly
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Business Insider recently reported that China is trying to buy a $1.2 billion stake in Facebook, giving the country "a huge chunk" of the world's most popular social playground. If you're an active Facebook user, China's interest in Zuckerberg's social networking site is a scary one given the country's penchant for censorship. But should you really be concerned?
As Business Insider reports it, Citibank is trying to acquire up to $1.2 billion of Facebook stock for two sovereign wealth funds, one from the Middle East and the other Chinese. That sounds big, but Business Insider argues a billion dollar investment wouldn't buy China much influence in a social networking site expected to fetch $100 billion or more when it goes public. What's more, Business Insider says Beijing would be acquiring nonvoting stock, and shareholders wouldn't even have the right to look at what's on the site.
That's all fine and dandy, but according to Forbes, "there are other reasons to be concerned." Forbes argues that "Chinese leaders clearly view social media as a threat to their rule, especially after seeing its force-multiplying effect in the ongoing Arab Spring protests that have topped governments." Forbes believes that Chinese leaders have set their sites on controlling social media. Forbes points out that Facebook founder Mark Zuckerberg visited China in December and is set to return.
Image Credit: Technorati.com
"After the disastrous China experiences of Yahoo and Google and the troubled history of Microsoft there -- not to mention Beijing's recent tirade against foreign social media -- the Facebook founder appears both arrogant and naïve.," Forbes says.
You can read the rest of Forbes' perspective here.
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thetechchild
July 08, 2011 at 12:52am
This would give China a lot of information, and thus, power. Let's not kid ourselves in thinking that $1.2 billion in shares won't get them that. Even in a $100B+ IPO, that's about 1% of public shares, and while that may not seem like much, it's definitely enough (even nonvoting) for some info gathering.
Moreover, regardless of your opinion on Facebook, you have to admit that it's got a huge following, and lots of very revealing activity and personal information.
UndeniablyPC
July 06, 2011 at 9:18am
The primary goal of this kind of financial investment from China would be larger access to the metadata. Since the metadata that exists in this environment is grossly powerful, it would give China the ability to access information that would have required them to invest significant resources in, more so than this paltry $1.2 billion. This would grant them access to satistical figures on what Americans and the rest of the world is consuming, as well as political aspirations and global feel towards Chinese objectives. I imagine that there are already Chinese investments caught up in Facebook, but this would give them considerable mobility in their political and financial objectives.
cj100570
July 05, 2011 at 11:46am
Facebook is already a Communist dictatorship so it only stands to reason that they should go into business with a Communist state.
ShyLinuxGuy
July 05, 2011 at 1:16pm
hehe, It is...read the ToS where it states that users must post content continuously or it's a violation and their account can be suspended.
Eoraptor
July 05, 2011 at 10:54am
facebook has got to be the most widely traded "private" company in the world... and everyone looks the other way so long as they get their palms greased, regulatory-wise
Holly Golightly
July 05, 2011 at 10:47am
This is great news for FaceBook. With a powerful Chinese influence, I say, FaceBook should sell itself completely to China. This will help benefit FaceBook as a social network and the people of China. Together, it can really work. I hate FaceBook with a passion, but perhaps with China changing the rules, perhaps I may reconsider my thoughts on FaceBook. Think about it... A social networking site for the people!
Nimrod
July 05, 2011 at 3:50pm
get the fuck out of here you retarded troll bitch.
"for the people"
dip shit
Holly Golightly
July 05, 2011 at 9:17pm
Oh... If it is not our favorite dimwit... Dimrod! Ha ha ha!!!!!!!!!!!!!!!!!!!!!!!
hammeredtoast
July 05, 2011 at 11:40am
I suspect you're trying to make a joke about socialism and social networking.
DDRDiesel
July 05, 2011 at 10:33am
"a billion dollar investment wouldn't buy China much influence in a social networking site expected to fetch $100 billion or more when it goes public."
Wait... You're telling me Facebook isn't public? ALL THESE THINGS I THOUGHT I KNEW ARE NOW LIES?!
szore
July 05, 2011 at 10:29am
Fuck China.
There, I said it.
REMEMBER TIANANMEN!
http://en.wikipedia.org/wiki/Tiananmen_Square_protests_of_1989
Holly Golightly
July 05, 2011 at 9:23pm
Man... You are sensitive... What the hell is wrong with you and rising hegemonic powers? Just because a socialist country wants to get into the social networking business does not mean you should curse it to hell. It is YOUR capitalist friends who got greedy and outsourced the good jobs to Communists China... And now that China is rich, it wants dibs on the biggest social networking service of them all. Nothing wrong with China. The Tea Party is taking America to a backwards direction while China continues to move forward. Before you curse out other countries... Look at your own country... And see if there is no negative history there.
jason27131
July 05, 2011 at 4:50pm
so a few hundred years ago USA supported black slavery and the ku klux klan. That's cruel and inhuman too.
Fuck America?
Stop being a hypocrite.
Antherz
July 05, 2011 at 2:44pm
Your point?...we all know it was too soon for people to protest against government in china when that occurred. if it happens now. it may have turned out differently. and if you dislike china so much.. throw out everything you own that's made in china cause your supporting thier ecomony...dumbass. you gotta think before you stay stupid stuff.
I know your gonna reply back to defend yourself but i want to make it clear that i'm not denying what happened there was horrible. but the past is the past. nothing we can do about it now.
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