Meta CEO Mark Zuckerberg apparently considered splitting off Instagram in 2018
On December 9, 2020, the US Federal Trade Commission (FTC) filed
Zuckerberg Says He Considered Spinning Off Instagram in 2018 - Bloomberg
https://www.bloomberg.com/news/articles/2025-04-15/zuckerberg-says-he-considered-spinning-off-instagram-in-2018
Meta's Zuckerberg eyed Instagram spinoff amid antitrust scrutiny, document shows | Reuters
Meta CEO Zuckerberg considered spinning off Instagram in 2018 over antitrust worries, email says
https://www.livemint.com/technology/tech-news/meta-ceo-zuckerberg-considered-spinning-off-instagram-in-2018-over-antitrust-worries-email-says-11744754714024.html
Meta CEO Zuckerberg considered spinning off Instagram 2018: FTC trial
https://www.cnbc.com/2025/04/15/meta-ceo-zuckerberg-considered-spinning-off-instagram-2018-ftc-trial.html
Instagram was not originally owned by Meta. According to Zuckerberg, Facebook (now Meta) had built its own photo sharing app in 2012. However, Zuckerberg was concerned about the rise of Instagram, which was showing signs of popularity at the time, and in February 2012, he claimed that 'Instagram is creating a network that could be a threat to us,' and in April of the same year, he acquired Instagram for $1 billion (about 140 billion yen) .
In addition, Meta acquired the chat app 'WhatsApp' for $16 billion (about 2.28 trillion yen) in 2014. Meta's series of acquisitions were criticized as 'failures' at the time. Nevertheless, Meta has invested heavily in Instagram and WhatsApp, leading to their prosperity today.
Facebook acquires free chat app 'WhatsApp' for 1.64 trillion yen - GIGAZINE
However, Zuckerberg was concerned about the impact of antitrust lawsuits over the company's acquisitions, and in 2018 he wrote to senior executives, 'We are facing a situation where we may be ordered to separate Instagram and WhatsApp from Meta over the next 5 to 10 years, which could prevent us from integrating the apps even if we wanted to.' He also wrote, 'I am wondering whether separating Instagram ahead of such an order is the only way to achieve our important future goals.'
Zuckerberg also said at the time that 'most companies perform better after they separate their businesses,' emphasizing the benefits of separating Instagram. In addition, Zuckerberg testified in court that 'I don't really remember what I was thinking at the time.'
Daniel Matheson, lead litigation counsel for the FTC, said, 'Meta built its position by acquiring rivals for over a decade, based on the idea that it was better to buy than to compete. Meta's successive acquisitions have harmed consumers and the marketplace. The emails about the Instagram acquisition and divestiture are conclusive evidence that Meta was trying to eliminate a threat.'
'The FTC is ignoring reality and creating a fictitious market in which Meta is trying to exclude competitors like TikTok, X, YouTube and LinkedIn,' said Jennifer Newsted, Meta's chief legal officer.
Meta has proposed to pay the FTC $450 million (approximately 64 billion yen) as a settlement in late March 2025. However, since the FTC has offered Meta a settlement of $30 billion (approximately 4.2 trillion yen), FTC Chairman Andrew Ferguson rejected Meta's proposal. In response, Meta has reportedly increased its proposed settlement amount to $1 billion (approximately 140 billion yen).
Related Posts:
in Web Service, Posted by log1r_ut