Forbes: Forbes says Zuckerberg’s $2.4B Facebook acquisition is “unlikely”
The billionaire’s $1.9 billion Facebook acquisition of the social network last year has been widely hailed as the biggest in history.
But in a new interview with Recode, Forbes contributor and founder of the startup incubator Spark, Josh Wertheimer, says the deal will likely end up being the most controversial in history and that he believes the deal’s price tag is too high.
Wertheimer told Recode that he’s concerned the deal is being sold as a quick win for Facebook, given the public’s concerns about its privacy practices and the fact that the terms of the deal are reportedly “so high they’re almost impossible to defend.”
“It’s going to be the most expensive and most controversial deal in history, I think, because it’s going so high,” Wertheim said.
“But I don’t think we’ll see any real winners or losers in terms of Facebook.”
Wertheim also noted that he has no doubt the deal would have ended up being a much bigger deal had it been approved by the Securities and Exchange Commission, which has a broad set of authority to review and approve mergers and acquisitions that are expected to create a “significant number of new jobs and economic activity.”
But Werthem also noted the deal could have far-reaching ramifications, given that it will likely lead to a massive shift in the way people use Facebook.
“The value proposition of this deal is that Facebook is so big that it could really have huge consequences for people’s everyday lives,” he said.
In a recent interview with The Wall Street Journal, Werthe said the $2 billion Facebook purchase price tag was likely too high given that the company already had a “substantial” workforce and it has a market capitalization of more than $50 billion.
“This is a very high price tag,” Warthe said.
Werthere also noted he would have been disappointed if the deal had ended up falling through because it was “a good investment.”