Meta Platforms’s Acquisition of VR App Maker Within Put On Hold Amid FTC Lawsuit

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The Federal Trade Commission’s lawsuit seeking to block Meta Platforms’s ($NASDAQ:META) planned acquisition of VR app maker Within has put a hold on the deal. According to Bloomberg, company and government lawyers have told U.S. District Judge Edward Davila that the acquisition won’t close until Jan. 1 or the court rules on an injunction blocking the deal, whichever comes first. It’s not yet clear how this will affect Meta Platforms in the long term, but it could have a significant impact on the company’s plans for VR and its overall earnings.

Market Reaction

Meta Platforms stock opened at $167.0 on Friday and closed at $167.1.

VI Analysis

The company’s fundamentals reflect its long-term potential. Below is an analysis of Meta Platforms, which is made simple by VI app. The VI Risk Rating shows that Meta Platforms is strong in asset, profitability, growth, and weak in dividend. Meta Platforms has a high health score of 8/10 considering its cashflows and debt, is capable to sustain future operations in times of crisis. Meta Platforms is classified as ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. At the right price, it is suitable for those who want to invest for high capital gains. High growth companies are deemed more risky as they attempt to grow faster.

Summary

Investors are always looking for the next big thing, and Meta Platforms has been one of the hottest stocks on the market for years. But with news of this acquisition being put on hold, some investors may be getting cold feet. The acquisition of Within would have given Meta Platforms a leg up in the VR market, but now it seems that the company will have to wait a little longer to get its hands on the app maker. This news comes at a time when Meta Platforms is already facing scrutiny from the FTC over its privacy practices. The last thing the social media giant needs is another legal headache. Investors will be watching to see how Meta Platforms navigates these waters in the coming days and weeks. For now, the stock is down, but it’s still one of the hottest stocks on the market.