Facebook has warned it may be forced to shut down if it loses a series of costly lawsuits.
The social networking site set out the stark message in a document prepared for potential investors before its $100billion stock market floating this spring.
It said the various legal actions, including looming legal action from Yahoo, 'could have a significant impact on our business, financial condition or results of operations.
It added: 'The terms of such a settlement or judgment may require us to cease some or all of our operations or pay substantial amounts to the other party.'
But the firm's warnings are being seen, by analysts, simply as an exploration of the 'worst-case scenarios' for investors and a way for Facebook to cover its back.
This has been backed up by the firm, and by American banks who have increased the firm's overdraft from $2.5billion to $5billion.
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Source: dailymail.co.uk
By: Lee Moran
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