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Social media's impact on kids merits big debate: US expert
by Staff Writers
Washington (AFP) May 12, 2012

Facebook co-founder Saverin gives up US citizenship
Washington (AFP) May 11, 2012 - One of Facebook's co-founders, Eduardo Saverin, who stands to make a bundle in the social network's share offering has renounced his US citizenship, records showed.

The move by Saverin, who lives in Singapore, could save the Brazilian native a bundle in US taxes.

Saverin, whose public spat with Mark Zuckerberg was featured in the 2010 film "The Social Network," is on a list of names published April 30 by the US Internal Revenue Service of those renouncing US citizenship.

His stake in Facebook after a losing a power struggle with Zuckerberg is believed to be between two and four percent. The website "Who Owns Facebook?" said his share would be worth around $3.4 billion.

Bloomberg News cited a spokesman for Saverin saying he had decided to renounce US citizenship because he intended to stay in Singapore, where he has invested in several startups.

"Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time," said Tom Goodman, a spokesman for Saverin, in an e-mailed statement to Bloomberg, which said Saverin renounced US citizenship last September.

US citizens normally pay taxes on all their worldwide income, regardless of where they live. But Saverin would likely escape much of those taxes because Singapore does not tax foreign-sourced income.


Facebook's big stock offering on Wall Street must be followed by an intensive debate on Main Street about social media's powerful impact on children, an expert on the topic says.

Jim Steyer, founder of Common Sense Media, a San Francisco think tank focusing on media and families, said the technology that Facebook represents is having "an enormous impact" on youngsters, families and schools worldwide.

"We need to have a big national, if not global conversation about the pros and cons of that," Steyer, a father of four who is also a civil rights lawyer and Stanford University professor, told AFP in an interview.

While social media such as Facebook, Google Plus and Twitter offer "extraordinary possibilities" in such areas as education, he said, "there are also real downsides in a social, emotional and cogitative development way."

"Hopefully, after the flurry of the IPO and after the valuation of Facebook is done, then we can have a very serious ongoing discussion of what this means," he said.

Steyer was in Washington to promote his just-published book "Talking Back to Facebook: The Common Sense Guide to Raising Kids in the Digital Age," which argues for greater parental involvement in their children's online lives.

"Whether we like it or not, kids are now spending far more time with media and technology than they are with their families or in school," -- as much as eight hours a day on average in the United States alone, he wrote.

Children face the triple peril of what Steyer calls RAP -- relationship issues, attention and addiction problems, and privacy issues -- as well as cyberbullying, online pornography and, for girls, body image fears.

Steyer is particularly critical of Silicon Valley tycoons -- he knows many on a first-name basis -- who, unbridled by government regulation, insist that privacy no longer matters in an increasingly interconnected world.

"This extraordinary revolution in digital media has been driven by young (software) engineers, many of whom are not parents, many of whom are somewhat socially awkward and many of whom have not really thought through the social and emotional consequences" of their products, he said.

"There is an arms race for data, and to build things as fast as possible ... but that's not a great strategy when you're talking about kids," he said, accusing tech outfits for "not respecting the concept of privacy."

Earlier this week, a Consumer Reports survey found nearly 13 million US Facebook users -- out of 157 million, and 900 million worldwide -- do not use, or are not aware of, the site's privacy controls.

Girls are especially vulnerable, Steyer said, with studies indicating that many body-conscious teens are photoshopping images of themselves so as to look thinner and score more "likes" among their friends.

By way of advice to parents, he recommended "personal technology time-outs" and banning smartphones at the dinner table. "Meal time should not be tech time," he said.

Children must also be taught to reflect before hitting the "send" button on something they might later regret, refrain from anonymous comments, and not to believe everything they read or see online.

On a governmental level, Steyer suggested the United States follow Europe's lead in privacy regulation and introduce an "eraser button" enabling users to wipe off anything they might have posted in the past.

"We need clear and simple rules (around privacy) for the tech companies, too, because right now they've dominated the debate and they've set the rules themselves," he said.

But the immediate responsibility, he said, falls on moms and dads.

"It's part of parenting 2.0 today, so you have to do your homework," he said.

"You have to actually learn the rules of the road... and then you have to set clear and simple limits for kids, set clear rules of behavior -- and you have to be a role model.

"If you're constantly addicted to your cellphone or your 'CrackBerry' then that's not sending a very good message to your kids."

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Facebook buy of Instagram scrutinized
San Francisco (AFP) May 11, 2012 - Facebook's billion-dollar deal to buy the startup behind photo-sharing smartphone application Instagram has evidently caught the eye of US regulators.

The hefty price tag qualified it for a review by the US Federal Trade Commission (FTC), which remained mum on the subject despite a Financial Times report on Thursday saying that a probe was underway.

A Facebook spokesman contacted by AFP said the California-based company would not comment on reports of a FTC probe of the Instagram acquisition.

The impetus of an FTC investigation was considered routine given the price tag on the deal, but such a probe could threaten to complicate the social network's plan for an initial public offering (IPO) of stock next week.

"It takes 12 months to undergo review and the acquisition can't close until the FTC finishes," said independent analyst Rob Enderle of Enderle Group in Silicon Valley.

"Now Facebook has an open acquisition during an IPO and that could be a problem."

Takeovers under review by regulators tend to spook potential investors because of uncertainties regarding how they may play out.

Facebook last month announced a deal to buy the startup behind smartphone photo sharing application Instagram.

The big ticket purchase was seen by some as a move by Facebook to strengthen defenses against Google and blazingly hot newcomer Pinterest in the weeks ahead of what promises to be a history-making stock market debut.

Top executives at the world's leading social network this week kicked off their all-important road show on Wall Street -- an intense marketing drive ahead of the company's expected trading launch on the tech-heavy Nasdaq on May 18.

In a filing with the US Securities and Exchange Commission, Facebook set a price range of $28 to $35 for its shares, which would value the firm at between $70 billion and $87.5 billion.

Based on the estimated market value, Facebook would rank behind Amazon and Cisco, each worth over $100 billion, but ahead of Hewlett-Packard ($48 billion) and struggling Yahoo! ($19 billion).

If all stock options that could be exercised in the next one to two years are taken into account, the value would rise to between $91 billion and $97 billion -- or up to 26 times the turnover Facebook posted in 2011.



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