Zuckerberg Says Snapchat Missed Out on $6B Buyout Opportunity

Meta CEO on Snapchat Acquisition Offer

Testimony during Meta’s ongoing antitrust trial revealed that Mark Zuckerberg, CEO of Meta, believes Snapchat’s growth trajectory would have been steeper had they accepted a buyout offer from his company in 2013, according to a report by Business Insider.

Records submitted as evidence in the case show that Meta, formerly known as Facebook, proposed acquiring Snapchat for $6 billion – though initial reports indicated a figure of $3 billion. Zuckerberg stated, when questioned by an attorney representing the FTC, that he perceived Snapchat’s growth as being below its potential.

Zuckerberg’s Assessment of Snapchat

He further suggested that integrating Snapchat into Meta would have resulted in enhancements to the application. “I believe that had we acquired them, we would have expedited their expansion,” Zuckerberg testified, “however, this remains speculative.”

Government’s Argument Regarding Meta’s Acquisitions

The government introduced the failed Snapchat acquisition as evidence supporting its claim that Meta prioritizes maintaining its market dominance through acquisitions of competing platforms, rather than through direct competition.

FTC’s Case Against Meta

The Federal Trade Commission (FTC) is seeking a remedy that would compel Meta to either restructure its operations or divest itself of Instagram and WhatsApp. The FTC contends that Meta invested heavily in acquiring these apps specifically to neutralize potential competitors to Facebook, thereby establishing an unlawful monopoly.

The core argument centers on the idea that these acquisitions were not driven by innovation, but by a strategic effort to eliminate competitive threats. This, the FTC argues, has stifled innovation and harmed consumers.

Key Points of the Trial

• Meta offered to purchase Snapchat for $6 billion in 2013.
• Zuckerberg believes Meta could have accelerated Snapchat’s growth.
• The FTC alleges Meta acquires rivals to maintain its dominance.
• The FTC is seeking to force Meta to sell Instagram and WhatsApp.

The trial continues to unfold, with further testimony expected to shed light on Meta’s acquisition strategy and its impact on the social media landscape.