3 ms·
Note at the time (2011-2012) there was almost assuredly a lot of incentive at FB to look the other way regarding this kind of fraud, since they were preparing t
by npunt 8y ago
Note at the time (2011-2012) there was almost assuredly a lot of incentive at FB to look the other way regarding this kind of fraud, since they were preparing to go public (May 2012). When going public you want to get the best price on your IPO, so I imagine the order from higher up was to push revenue higher and look the other way on these types of issues.
FB's stock dropped 40% in the months after going public, so that incentive to not do anything to impact revenue remained as FB dug themselves out of that hole. It may have even been amplified because internal employees were in lockout period watching the stock drop and wanting to cash out at a good price, and probably were (psychologically) price anchored on the IPO price.
- eeeeeeeeeeeee 8y agoYep, I think this just shows how the push for ever increasing revenue creates a disgusting environment. Almost every single bad Facebook decision can be traced to them trying to cut corners for increased valuation.