Risk Factors: Counterparty & Public Media
Our Supplier Relationships Subject Us to a Number of Risks
We have significant suppliers, including licensors and affiliates, and in some cases, limited or single-sources of supply, that are important to our sourcing, services, manufacturing, and any related ongoing servicing of merchandise and content. We do not have long-term arrangements with most of our suppliers to guarantee availability of merchandise, content, components or services, particular payment terms, or the extension of credit limits.
If our current suppliers were to stop selling or licensing merchandise, content, components or services to us on acceptable terms, or delay delivery, including as a result of one or more supplier bankruptcies due to poor economic conditions, as a result of natural disasters or for other reasons, we may be unable to procure alternatives from other suppliers in a timely and efficient manner and on acceptable terms, or at all.
Unfavorable media coverage could negatively affect our business.
Any unfavorable publicity or press release or public statement regarding, for example, our privacy practices, product changes, FSR products, any of our officers, directors, employees, product quality, litigation or regulatory activity, or the actions of our affiliates or partners, or our users, could adversely affect our reputation. Such negative publicity also could have an adverse effect on the size, engagement, and loyalty of our user base and result in decreased revenue, which could adversely affect our business and financial results.