Facebook shares plummet

Macworld Australia Staff
30 May, 2012
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Facebook shares have dived almost 10 percent overnight, with continued speculation that the company is on the verge of acquiring Norwegian mobile browser Opera Software and Israeli firm Face.com.

Facebook shares finished at US$28.84 at the close of business yesterday in the US, 24 percent below its opening price of US$38 on May 18.

Global Equities Research Managing Director Trop Chowdry did not believe the Opera acquisition will occur because it would not benefit Facebook.

“Facebook’s mobile problems are not going to be fixed by buying a mobile browser company,” Chowdhry told CNN.

“As a matter of fact, it is totally irrelevant from Facebook’s perspective, as Opera will narrow Facebook’s ecosystem and not broaden it, which Facebook desperately needs right now.”

According to analysts competition from rival companies like Google is creating uncertainty with the Opera acquisition as it could push the price over US$1 billion.

Face.com, who produce facial recognition technology, have a real-time friend tagging Facebook app called Photos Tagger and an iOS app called Klik.

The Face.com acquisition speculation was first reported in Hebrew newspaper Calcalist, which valued the deal in the “tens of millions” of dollars.

Facebook has had a difficult time of late with the recent Facebook Camera app launch, continued debate about a potential smartphone and the disastrous IPO opening.



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