Gavin Baker
+ Your AuthorsArchive @GavinSBaker Managing Partner & CIO, Atreides Management LP. Formerly Fidelity OTC Fund. No investment advice, views my own. gavin-s-baker.com/ Dec. 22, 2020 1 min read

1) “The lawsuit itself said Google and Facebook were aware that their agreement could trigger antitrust investigations.”

Red meat for regulators.

“Look over here!!! Please focus on header bidding!!!” 😀

 https://www.wsj.com/articles/google-facebook-agreed-to-team-up-against-possible-antitrust-action-draft-lawsuit-says-11608612219?mod=hp_lead_pos1 

2) There is a reasonable chance this deal was made with the hope of distracting regulators.

It was not “a big deal strategically.” These businesses are absolutely irrelevant to both companies.

Easy to shut them down or spin them off to give regulators a victory.

3) $500m of annual spend for Facebook in Google auctions sounds like a lot, but this is a low margin business.

This agreement is sub 0.25% of pretax profits for each company and doesn’t touch any of the Crown Jewels.

4) Think about this profile of Kent Walker vs. the explosiveness of those emails.

“Among Mr. Walker’s priorities has been the expansion of embedded groups of lawyers...who act as eyes and ears to spot, and stop, potentially anti-competitive behavior.”

 https://www.wsj.com/articles/meet-the-lawyer-trying-to-keep-google-from-being-broken-up-11608373801?mod=searchresults_pos1&page=1 


You can follow @GavinSBaker.



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