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In an attempt to advise Whatsapp, Morgan Stanley Planned to emphasize Google’s dangers of owning Facebook Execs Message Platform, according to a federal expert in the Jihoon Rim Commercial Commission. Zuckerberg has been reported to have been concerned about another company that acquires WhatsApp and its user base for the construction of a social media platform, according to court documents.
If Google acquired WhatsApp instead of Meta (then Facebook), the search engines managed by search engines would threaten the dominance of Facebook in the world of social media. At least it was Morgan Stanley’s terrain when the bank tried to advise WhatsApp during conversations for the acquisition, according to the Federal Expert Committee on Trade.
Last week, the antitrust test with high bets between Meta and FTC began, in which the agency claims that the company has built a monopoly on social media through its acquisitions on Instagram and WhatsApp. If it is found to have violated antitrust laws, META may be forced to get rid of those platforms that are central to the revenue of the giant of social media and strategic plans for long -term growth. The leaders who were invited to testify during the 8-week process include CEO Mark Zuckerberg, Chief Operations Officer Sheril Sandberg and Instagram co-founder Kevin Sistrom.
On Monday, FTC called Jihoon Rim, a professor at the University of New York and former CEO of the Message app and competitor at WhatsApp Kakao as his expert, witness, Air Reported.
During RIM’s testimony, he stressed that both WhatsApp and Instagram are “very likely to be successful” regardless of the acquisition. Both platforms saw 60% of their monthly active users on a daily basis, and the leading investor of Whatsapp-Jim Goetz from Sequoia Capital-made the highest engagement app, which he had ever seen, according to RIM.
The success of Whatsapp made Meta nerve managers after the messages platform saw popularity abroad, exceeding Meta’s Facebook Messenger. But the real danger was the potential of Whatsapp as a competitor in social media, according to the 92 -page memorandum, which was introduced in this case. The Image, a decision of the cross-a-general reasons for a summary decision, also outlines the FTC antitrust trial against Meta, in particular around the acquisition of the company of WhatsApp and Instagram.
Meta Leadership was found concerned about WhatsApp scanning in more than just a messaging platform if Meta didn’t buy it or another competitor reached it first. According to the memorandum’s opinion, during internal presentation, some leaders said that WhatsApp was “one of the most significant competitive threats [Meta] person[s]”So [Meta’s] Primary products. “
In addition, in February 2013 [Meta] of mobile and ads “was necessary. He stressed that” the largest competitive vector for [Meta] It is for some company to build an application for communication communication with small groups of people and then turn it into a broader social network, “according to the note.
Subsequently, Morgan Stanley wanted to conclude a transaction between the message platform and a potential buyer. In his candidacy to advise Whatsapp, Morgan Stanley Bankers benefit from Zuckerberg’s concerns about potential rivals on Facebook, including any transaction for beginners between Google and WhatsApp.
“WhatsApp can determine the winner on the social network of mobile devices,” writes the Teste bank indicated by RIM in the process, as reported by AirS “Google’s resources in combination with WhatsApps user base and traction can create the overwhelming social network of mobile devices (exceeding Facebook).”
Although it is unclear whether the particular terrain was delivered, Morgan Stanley represents WhatsApp during negotiation of the acquisition in early 2014.
Morgan Stanley and Rome did not return immediately Fortune’s Request for comment.
Google was interested in acquiring the Message Platform and, according to messages, has been trying since 2010 after his plans to expand the social media platform Google+ failed to gain grip.
In the end, Meta paid $ 19 billion for WhatsApp in February 2014. Following the acquisition of Instagram for $ 1 billion in April 2012, the FTC initially approved the acquisitions of the relevant purchase times, but is now striving to unleash the Meta ownership by interrupting the company. FTC claims that the effects of the acquisitions were anti -competitive.
The process is expected to continue this week with witnesses such as Tiktok Adam Presser Operations, Vice President of the X Keith Coleman and former Google Bradley Horowitz contractor.
FTC, Meta and Google did not return FortuneRequest for comment.
This story was originally presented on Fortune.com