Facebook’s (FB) shares lost 4.9% amid a whistleblower scandal and an outage that sent it offline for hours on Monday. But let’s start with the obvious before we get into the nitty-gritty.
If you own a smartphone and have an internet connection, you probably realized that Facebook, Instagram, and Whatsapp were all down, after you tried to restart your wifi for the tenth time in a row. Facebook claims that the outage was due to the company’s network configuration and that no user data was comprised during the blackout.
As if this already wasn’t enough of a hassle for Zuckerberg, a former Facebook product manager named Frances Haugen has been revealed as the source behind tens of thousands of pages of leaked internal company research. In an exclusive interview on 60 minutes (aired the same day of Facebook’s outage), Haugen explained how the company has been negligent in eliminating violence, misinformation, and other harmful content from its platforms.
why it matters
Yesterday's scandal and outage caused Mark Zuckerberg's net worth to drop $6.1b (yes, you read that correctly). According to Forbes' Real-Time Billionaires List, Zuckerberg fell below Bill Gates to No. 5 in the exclusive billionaires ranking. In addition to this, the scandal could have major repercussions on how regulators manage big tech companies going forward.