Facebook break-up unlikely, says Loop Capital
Loop Capital analyst Alan Gould kept his Buy rating and $200 price target on Facebook after holding a call with a "leading Washington expert on antitrust and a former general counsel to the Senate Antitrust Committee, Seth Bloom". The analyst says the expert suggested that the company may have to pay a "major fine" of up to $5B to resolve the alleged violation of its 2011 consent decree and the regulators may ask for some changes in management such as requesting that CEO Zuckerberg resigns from his post as Chairman. However, Gould believes that proving anti-competitive behavior allowing the government to break up Facebook would be difficult. The analyst maintains his view that the shares are "attractively priced", particularly given the value of monetization from its WhatsApp and Messenger platforms.