Were Feds Snooping into Facebook Ahead of the IPO?
Federal regulators wanted to know more about Facebook’s (NASDAQ:FB) mobile users and the company’s relationship with Zynga (NASDAQ:ZNGA) ahead of the former’s IPO, according to filings with the Securities and Exchange Commission.
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Facebook on Friday disclosed letters with the SEC that a back-and-forth correspondence on issues such as Facebook’s purchase of AOL (NYSE:AOL) patents from Microsoft (NASDAQ:MSFT) and its pending purchase of Instagram. Regulators also wanted information on how Mark Zuckerberg’s position as chief executive impacted the company.
The filings, a usual part of the IPO process, were confidential at the time of the IPO, but as is the norm, were released about 30 days after the stock began publicly trading. Facebook shares are down about 21 percent since the stock started trading on May 18.
Shares of Facebook actually closed higher over 6% at $30.01 per share on Friday.
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