THE

China wants to buy Facebook

In Tech, World News on July 5, 2011 at 5:18 pm

By Gordon G. Chang

On Thursday, Business Insider reported that China is trying to buy “a huge chunk” of Facebook.

According to the business news website, Beijing approached a fund that buys stock from former Facebook employees to see if it could assemble a stake large enough “to matter.”  Moreover, Citibank is rumored to be trying to acquire as much as $1.2 billion of stock for two sovereign wealth funds, one from the Middle East and the other Chinese.  Business Insider reports a third source, from a “very influential” Silicon Valley investment bank, confirms that Citi is representing China.

Should Beijing be allowed to buy a part of Mark Zuckerberg’s site?  Business Insider tells us there is “little need” for concern about Chinese censors looking at the photos and postings of the 700 million people who trust Facebook with their personal online activity.

First, China’s position won’t be large.  A billion-dollar investment does not buy much influence in a site expected to be worth a hundred times that when it goes public.  Second, Beijing will be acquiring nonvoting stock.  Third, shareholders don’t get the right to look at what’s on the site.  All of these arguments from Business Insider ring true.

Yet they are all beside the point—and there are other reasons to be concerned.  The business site says…

Full article…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: