SEC Investigates Facebook’s Mobile Strategy
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
The U.S. Securities and Exchange Commission is conducting an investigation by asking Facebook executives to have them explain in detail how a user shift to mobile devices could affect their profits. “Assuming that the trend toward mobile continues and your mobile monetization efforts are unsuccessful, ensure that your disclosure fully addresses the potential consequences to your revenue and financial results rather than just stating that they ’may be negatively affected,’” said the SEC when writing to Facebook on Feb. 28. Facebook had amended their IPO filing on May 9, which was one week before their $16 billion IPO.