Acquisitions Being Unsuccessful
Facebook intends to continue to make acquisitions -- such as that one billion dollar acquisition of Instagram from earlier in April -- and the company acknowledges that these acquisitions might not go as smoothly as it would like. "We plan to continue to make acquisitions, which could require significant management attention, disrupt our business, result in dilution to our stockholders, and adversely affect our financial results," the amended S-1 states. Why's that? <blockquote>Any integration process may require significant time and resources, and we may not be able to manage the process successfully. We may not successfully evaluate or utilize the acquired products, technology, or personnel, or accurately forecast the financial impact of an acquisition transaction, including accounting charges.</blockquote> Whether or not Instagram was "successfully evaluated," or Facebook is able to "utilitze" the currently revenue-less photo-sharing network to make money, will, to some extent, determine Facebook's future success.
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