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Mark Zuckerberg’s Net Worth Dips By US$3 Billion After Facebook News Feed Change
By Mikelle Leow, 13 Jan 2018
Image via Friesehamburg / Wikimedia Commons (CC 4.0)
Mark Zuckerberg wrote on Thursday that Facebook’s news feed algorithm would be reshuffled to prioritize posts from friends and family members, which means users will soon have reduced access to news uploaded by publishers through the social network.
The Facebook CEO reasoned that people were spending too much time on the platform reading “public content—posts from businesses, brands and media,” which was allegedly “crowding out the personal moments that lead us to connect more with each other.”
“Based on this, we’re making a major change to how we build Facebook. I’m changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions.”
The announcement did not take too well with investors. On Friday, Zuckerberg’s net worth took a US$3 billion dive. Facebook’s shares fell by 4% and now stands to lose almost US$23 billion in market capitalization.
The declines might not even faze the company that much, however. Mark Zuckerberg still has a US$74 billion net worth and Facebook’s shares are still up 42% from 2017.
Big brands who have invested millions of dollars in boosting the visibility of their posts might feel like the move is a huge stab in the back.
Back in 2017, Facebook had convinced publishers to cough up extra money for better reach. It also encouraged them to upload their articles directly onto the platform so that the content would load more quickly.
“Now it’s telling them that, as a matter of policy, it plans to de-prioritize their relationships with those audiences,” BuzzFeed News reporter Alex Kantrowitz wrote.
Despite being aware that “some measures of engagement will go down,” Zuckerberg is determined to sail against the wind.
“If we do the right thing, I believe that will be good for our community and our business over the long term too.”
[via Mashable, cover image via Friesehamburg / Wikimedia Commons (CC 4.0)]
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