Meta Platforms NASDAQ:META reportedly explored buying Kalshi before deciding to build its own prediction-market product, Arena.
According to NPR, Mark Zuckerberg discussed a possible acquisition with Kalshi CEO Tarek Mansour last year as prediction markets gained popularity. A deal never happened, though the two companies later agreed to integrate Kalshi into Threads.
Meta then moved to build Arena internally. Unlike Kalshi and Polymarket, which use real-money trading, Arena is expected to start with a points-based system. That could help Meta avoid some of the regulatory hurdles facing real-money prediction markets, while leaving room for possible real-stakes features later.
The report also revives questions about Meta's buy or build strategy, especially as regulators continue scrutinizing the company's approach to competition.