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Meta offered $450 million to settle its antitrust trial — about $29.5 billion less than the FTC wanted

But Zuckerberg’s business could lose a lot more if it’s forced to sell Instagram or WhatsApp.

4/16/25 7:50AM

The Federal Trade Commission’s antitrust trial against Meta is now heading into its third day, as the company’s acquisitions of Instagram and WhatsApp in 2012 and 2014, respectively, are hauled into question.

And according to new Wall Street Journal reporting, it’s a trial that CEO Mark Zuckerberg himself was trying to settle for $450 million on a phone call with the FTC chair in late March — considerably lower than the $30 billion fine the Commission had proposed, and a bargain compared to what it would cost the business were it forced to sell off either of the apps in question.

You’re gonna need a smaller moat

On Monday, the first day of the trial, an FTC lawyer claimed that Meta chiefs were aware that the acquisitions would help the company build a “moat” to fend off competition in the personal social networking industry, creating a monopoly in a space that includes only two other platforms, per the FTC’s argument: Snapchat and smaller platform MeWe.

Meta argued that the Commission has “gerrymandered a fictitious market” with this take, in a company blog post titled, “The FTC’s Weak Case Against Meta Ignores Reality,” which was posted a day before the trial kicked off.

However, the social giant was clearly keen to keep the case out of court — having already forked out the largest tech company fine in FTC history in 2019, handing over $5 billion for violating consumers’ privacy. Looking at how Meta’s business is made up, its attempts to shield its apps from the legal spotlight make a lot of sense.

Meta revenue splits chart — Sherwood News

Since it acquired Instagram for a reported $1 billion in April 2012, Meta’s quarterly revenues are up more than 40x, while ~98% of the $48.4 billion it posted in Q4 2024 came from its family of apps, including Facebook, Instagram, WhatsApp, and Messenger.

The division is also much more profitable for Meta than its other revenue stream. Apps have brought in a whopping $264 billion since Q4 2020, compared with Reality Labs (home to the company’s AI operations and metaverse ambitions), which has burned $60 billion in the same time frame.

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eBay stock slumps on gloomy Q4 outlook despite solid Q3 earnings

Shares of eBay fell as much as 10.5% in premarket trading on Thursday morning after the company gave a lower-than-expected profit forecast for the important holiday shopping season.

The e-commerce giant reported solid numbers for the third quarter on Wednesday, with revenue up 9% as reported to $2.8 billion and gross merchandise volume rising 10% to $20.1 billion, topping the average analyst forecast of $19.4 billion, per Bloomberg.

However, concerns about the future somewhat overshadowed these results.

eBay outlined its profit outlook for the period ending in December to $1.31 to $1.36 a share, with revenue at $2.83 billion to $2.89 billion. According to Bloomberg-compiled data, this broadly matches Wall Street’s estimates for the top line, but misses on the bottom line, with analysts forecasting EPS to come in at $1.39 — suggesting the company expects some further margin pressure.

The company has been facing macroeconomic challenges since the US ended the de minimis tariff exemption in late August, with the online marketplace reliant on shipments. One small silver lining? CFO Peggy Alford highlighted a “less durable trend” on a post-earnings call: that as commodity prices for precious metals boomed, demand for bullion and collectible coins on eBay spiked.