FACEBOOK admits 42 million of it's accounts are FAKE - Bob FIDDAMAN made several fake Tuesday1st blogs

http://www.ft.com/cms/s/0/45b0b800-68b0-11e1-b803-00144feabdc0.html#axzz1p66vVmXE

After a month of negotiations with federal regulators, Facebook has filed an amendment to its initial public offering, acknowledging new risks associated with its business and adding a further 25 banking firms to its roster of underwriters.



The company admitted that 5 per cent to 6 per cent of the accounts on its social network were fictitious or duplicative, amounting to about 42m of its 845m monthly active users.








Facebook has made a virtue of requiring people to use their real names and identities on the site, winning advertisers by providing access to real people.



“If advertisers, developers or investors do not perceive our user metrics to be accurate representations of our user base … our reputation may be harmed and advertisers and developers may be less willing to allocate their budgets or resources to Facebook,” the company said in the revised filing.



Facebook also made reference to its patent fight with Yahoo, in which the struggling internet company has alleged that Facebook’s technologies infringe on the intellectual property of 13 of its patents. Facebook said it was still investigating the matter.



Facebook’s filing also confirmed that the company had opened a new line of credit, totalling $8bn, largely to cover tax obligations associated with employees’ restricted stock units.



Among the 25 new underwriters hired to help sell Facebook stock were Citigroup, Deutsche Bank, RBC Capital Markets and Wells Fargo