A new report from the New York Times reveals that Facebook has set aside $3 billion in anticipation of a fine from the FTC of up to $5 billion.
Facebook Made the Disclosure in Quarterly Financial Report
The New York Times reported this afternoon that Facebook had set aside about $3 billion in anticipation of a major fine from the US Federal Trade Commission, possibly as much as $5 billion, which would make it the largest fine ever levied against a tech company.
The New York Time’s Mike Isaac broke the news over Twitter this afternoon.
Facebook expecting to be hit with an FTC settlement charge that could be as high as $3-5 BILLION bucks— rat king (@MikeIsaac) April 24, 2019
no agreement has been reached but the company set aside $3 billion this quarter which impacted its financial earnings statement, out this afternoon— rat king (@MikeIsaac) April 24, 2019
the numbers looked messed up — about half of what investors expected — b/c of the financial penalty preparation set aside and it's in GAAP. otherwise would have been a big beat.— rat king (@MikeIsaac) April 24, 2019
FB stock up 5 percent on this news which is funny— rat king (@MikeIsaac) April 24, 2019
assume investors are aware that 3-5 billion bucks is....not a lot of money to facebook when they mint about $15 billion per *quarter*
this probably alleviates some investor anxiety around regulatory action pic.twitter.com/7rYnlZ1MU5
here click thishttps://t.co/gSJtkcArnZ— rat king (@MikeIsaac) April 24, 2019