Cramer To Facebook: Forget About Libra, Acquire Square

Social media giant Facebook, Inc. FB's ambitions to enter the digital currency space would be better served through an acquisition of Square Inc SQ, according to CNBC's Jim Cramer.

What Happened

Cramer's opinion on Facebook's Libra has changed from saying its digital currency ambitions would be "huge" to now saying it is "clearly doing more harm than good."

The "Mad Money" host shifted his stance Wednesday and said during his show that Facebook "has to drop" its plans.

Speaking directly to Facebook execs, who Cramer said watch the show, he said the company should take "some of your money" geared toward an expansion into payments and acquire Square Inc SQ for $70 billion, or a 100% premium.

It's an offer that "nobody turns down" and would fit in well under Facebook's umbrella, the CNBC host said. 

Why It's Important

Facebook could "blow out" Square's payments network worldwide so that Square Cash will become "Facebook Cash," Cramer said. Square has exposure to bitcoin, so the acquisition would also give Facebook its "cryptocurrency fix," he said. 

What's Next

Facebook's Libra remains subject to government scrutiny, and this is going to cost money, Cramer said.

His second piece of advice to Facebook: hire "some unassailable outside counsel with real credibility," perhaps a "distinguished federal judge who is retired" and make the case to allow Facebook to self-regulate itself again.

Related Links:

Wednesday's Market Minute: The Utility Of Bitcoin

'Not A Lot Of Love' For Libra As Facebook Pitches Digital Currency In Washington

Photo courtesy of Square.