The Securities and Exchange Commission published letters it exchanged with Facebook leading up to its IPO, revealing details of the US regulator’s concerns over the social network’s mobile business strategy, its dependence on Zynga, and how it presented its advertising model.
The correspondence was made public on Friday, a routine disclosure, and showed similarly routine questioning. Facebook responded to all questions in amended filings before the public offering on May 18.
“I know that everyone wants to paint Facebook as evil because their shares have gone down,” said Michael Pachter, a technology analyst at Wedbush. “These questions are completely reasonable questions, each of these.” Read more