Error
  • JUser::_load: Unable to load user with id: 67

Featured Articles

IHS teardown reveals Galaxy S5 BOM

IHS teardown reveals Galaxy S5 BOM

Research firm IHS got hold of Samsung’s new flagship smartphone and took it apart to the last bolt to figure out…

More...
Galaxy S5, HTC One M8 available selling well

Galaxy S5, HTC One M8 available selling well

Samsung’s Galaxy S5 has finally gone on sale and it can be yours for €699, which is quite a lot of…

More...
Intel lists Haswell refresh parts

Intel lists Haswell refresh parts

Intel has added a load of Haswell refresh parts to its official price list and there really aren’t any surprises to…

More...
Respawn confirms Titanfall DLC for May

Respawn confirms Titanfall DLC for May

During his appearance at PAX East panel and confirmed on Twitter, Titanfall developer Respawn confirmed that the first DLC pack for…

More...
KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 gained a lot of overclocking experience with the GTX 780 Hall of Fame (HOF), which we had a chance to…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Tuesday, 05 July 2011 11:40

China looking to buy sizable stake in Facebook

Written by


Facebook revolution gets new meaning
Chinese officials are reportedly mulling a major investment in Facebook that would give Chinese authorities a say in the way Facebook is operated.

The investment would be channelled through a sovereign wealth fund, hence the move has prompted concerns that the Chinese Communist Party would be able to exercise some level of control over the social networking giant, despite the fact that the Chinese are apparently interested in non-voting stock.

Chinese sovereign funds, as well as government controlled investment funds from all over the world are already major players in the US economy, and every other developed economy for that matter. Hence, the criticism seems somewhat misplaced. Imposing any restrictions on such a transaction would probably send a very bad message to other investors. Besides, one could hardly describe Facebook as instrumental to national security. After all we are talking about Facebook, teen ramblings and family photos, something the boffins at RAND Corporation or Lawrence Livermore National Laboratory would hardly be interested in.

In any case, Facebook is apparently planning a $100 billion IPO, so even a sizable Chinese investment would not make much of an impact. Even if the sovereign fund chooses to buy voting stock at some point in the future, it would have to make a huge investment to exert any control over Facebook.

It is also worth noting that the number of Chinese Facebook users is booming, while the number of US users is declining. China’s booming middle class is picking up western consumerism and getting hooked on the internet, so the move makes a lot of sense in the long term and it probably has a lot more to do with capitalist dividends than communist ideology.

More here.

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

Comments  

 
+14 #1 Jigar 2011-07-05 12:13
Not to control but rather more interested in the information.
 
 
+11 #2 dicobalt 2011-07-05 12:43
I wonder if they will be given admin access to the Facebook system? Maybe that's what they really want so they can track down subversives.
 
 
+9 #3 gsacks 2011-07-05 15:54
Ha. If there is one thing the US exports to China, oh please let it be Facebook.
 
 
+9 #4 iicsus 2011-07-05 17:20
Quote:
the number of Chinese Facebook users is booming

Oh well...they used to be hard-working people.
 

To be able to post comments please log-in with Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments