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Cough up, like, 1% of your valuation and keep up the good work, says FTC: In draft privacy deal, Facebook won't have to change a thing

Doctor Syntax Silver badge

"set aside $3bn in anticipation of an FTC smack-down, leaving the biz with $2.43bn in profit"

This could be clearer but I'm interpreting this to mean that of the $5bn they had to root down the side of the cushions for $2bn because they'd already put $3bn in the swear box. So the profits for the first quarter would have been $4.43bn. Pro rate that means that annual profits are of the order of $17 to $18bn. But that $3bn set aside had to have come from somewhere, presumably profits in some other quarter. Even if the cost of the fine was spread over multiple quarters it must still have come from overall profits and is well over a quarter of that pro-rate estimated annual profits.

If I were an ordinary shareholder I'd be a bit narked to find that the business's playing silly buggers had resulted in a fine of over a quarter of a year's profits. In fact, I might be inclined to vote against the board at the next AGM. Of course, this being Facebook that would have no effect whatsoever due to the strange share structure.

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