Meta Closes Kustomer Acquisition Post Regulatory Consent
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Meta Closes Kustomer Acquisition Post Regulatory Consent

Meta Platforms (FB) has closed the deal to acquire Kustomer, a customer service CRM platform that helps contact centers and businesses connect with customers. The deal was announced in November 2020.

The acquisition had been facing a roadblock by the Federal Trade Commission on concerns of illegal monopolization. Last month, Meta secured conditional European Union antitrust approval by agreeing to provide rivals free access to messaging channels over the next ten years.

The deal seems to be important to Meta, as Kustomer manages CRM software that allows businesses to communicate with consumers via phone, email, text messages, WhatsApp, and Instagram. The company is banking on WhatsApp being used by these businesses to communicate with customers.

Kustomer’s CEO and Co-Founder, Brad Birnbaum, said, “The acquisition of Kustomer by Meta means we can now help more businesses grow faster by delivering highly personalized customer service –wherever and however customers want it.  As we combine our award-winning technology with the resources of Meta, we will give brands throughout the world greater customer visibility, intelligent automation, and the tools to quickly adapt to issues and opportunities.”

Price Target

Last week, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on FB with a $466 price target, implying 110.86% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 32 Buys, 11 Hold and 1 Sell. The average Meta price target of $332.14 implies 50.29% upside potential to current levels.

Hedge Fund Trading Activity

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Meta is currently Very Negative, as the cumulative change in holdings across all 41 hedge funds that were active in the last quarter was a decrease of 30.2 million shares.

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