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It's not material because they have the cash and it will not harm future cash flow. They also don't have to pay it all, Facebook is on the hook for $300m and th
by jonknee 10y ago
It's not material because they have the cash and it will not harm future cash flow. They also don't have to pay it all, Facebook is on the hook for $300m and the rest is from Luckey and Iribe.
Facebook just announced earnings this afternoon and banked $3.568b in profit for the quarter. That's 12x they'll pay even without any insurance. They have $29.45b in the bank so this is a 1% hit at worst, so as Sandberg said: not material to their finances. On top of that, as others have said they probably have already reserved the resources.
- jclarkcom 10y agoMost acquisitions will set aside 10-20% or more of funds into escrow to cover litigation and tax issues that occur, this isn't released for ~4 years after close (stat of limitations on tax returns). So chances are that FB is not paying much if any of the settlement amount and they don't have a big incentive to fight other than not setting a precedent of being easy to sue and win.