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They are accusing FB of paying big/unrealistic premium to gain a monopoly position. "One allegation often made against Facebook is that it has strategically so
by disown 6y ago
They are accusing FB of paying big/unrealistic premium to gain a monopoly position.
"One allegation often made against Facebook is that it has strategically sought to buy small potential rivals, often at a big premium."
An exaggerated example would be google buying firefox for $100 billion. It's a ridiculous price, but it helps google's monopoly.
You can grow a monopoly by intentionally underselling your competitor out of business. Or you can grow your monopoly by overpaying for your competitor and buying him out. Rockefeller and Standard Oil used both tactics to monopolize oil.