Facebook’s proposed revisions to its legal agreements with users went into effect following a vote by the social network’s users. One of the changes means that Facebook can now share your data with its affiliates. But who exactly are Facebook’s affiliates? Most of the media coverage has focused on Instagram. But Business Profiles research can now reveal that Facebook has at least 67 Facebook affiliate companies worldwide. The results are summarized in today’s infographic.
Facebook Inc., the publicly listed company, is registered in the state of Delaware. But our research shows that Facebook has formed numerous other companies in various US states and around the world for three primary purposes:
- To avoid taxes. Facebook has companies in Ireland and Luxembourg for this purpose. Like many other tech giants, it passes non-US revenue through its Irish company to avoid US corporate taxes.
- To run local operations. For example, Facebook has registered Facebook Inc. in several other US states. Most states and foreign countries require out-of-state businesses with operations inside the state or company to register.
- To run its payments business. Many of the Facebook affiliates we discovered were formed in 2011 as part of Facebook’s move into the payments business. It likely needs to create separate companies for this business because of regulatory requirements that apply to companies handling consumer payments.
It also, of course, has a number of other affiliate companies as a result of its numerous acquisitions.
This infographic shows that the virtual network has an extensive worldwide physical footprint.