Listen: Facebook, Louis Zuckerberg, Instagram discussed on Business Wars
"I usually might instead they sit quietly there's a chill in the air facebook is in turmoil in our last episode snapchat stock price went into a tailspin as the company lost users and was mercilessly copied by facebook but facebook got its own crisis brewing on July twenty fifth twenty eighteen facebook announces his quarterly results they're not good facebook missed its revenue targets and growth is slowing the platform has reached two point who billion monthly users now user acquisition over last quarter has only edged up a little over one percent it marks the company's slowest ever the growth the seemingly unending negative press has taken a toll now Zuckerberg must explain his recovery plan to investors he hops on a call with analysts we're getting rid of the financial incentives for sandwich decreed fake news much of which is economically motivated stop pages that repeatedly spread false information from buying ads and we also use IDA prevents fake accounts to generate a lot of the problematic content from ever being created in the I was in other words we're handling the fake news problem but he needs to go further to assuage their fears looking ahead We will continue to Invest Heavily Insecurity and privacy things we ever responsibility to keep people say but I've sat on House call we're investing so much insecurity that it will significantly impact our profitability. We're starting to see that this quarter at least that's what Zuckerberg is telling the public but privately he still believes data is key to his business and he has not given up on mining it in September two thousand eighteen the instagram office on facebook's Menlo Park campus Zuckerberg sits down in a glass walled con prince room for a meeting with Instagram co-founders Kevin System and Mike Krieger facebook bought instagram in twenty twelve and system and Krieger continued to run it early independently but that's been changing over the last six months tension between Zuckerberg and the Instagram co-founders has been building one of system and Kruger's top honchos was pulled over to work on facebook and facebook appoint a new head of product at Instagram Adam massery facebook veteran Louis Zuckerberg system and Krieger built instagram on their own but Zuckerberg wants tighter control and he's about to demand even more he tries to sweeten them up before making his pitch he knows it'll be a hard sell I'm really happy with how instagram's doing thank you we've now got more than four hundred million users on instagram stories that's more than facebook stories that's a tacit acknowledgement that Zuckerberg was right to copy snapchat Zuckerberg pauses and looks at each of them intently. There's something else i WanNa talk with you about oh how important data is to facebook the more data we have the better targeted we can make our ads in the more we can charge advertisers sister been Krieger look at each other they don't like where this is going right I'm on Instagram to share the location data of instagram users with facebook that way we'll be able to target them even better with ads it's exactly what they feared I'm sorry mark but I don't think we can do that. we're very sensitive about protecting our users data Zuckerberg doesn't want to hear it I understand that but this is not negotiable we need location data to target our ads and ads are the core of our business for system and Krieger this is the last straw we do not want to share data period given everything that's happened with Cambridge Analytica I can't believe you'd even ask US Zuckerberg stares them down to instagram's co-founders this seems like an insane demand one that risks the very integrity of their company but Zuckerberg won't take no for an answer this wasn't a request he wasn't order we're doing this with four without you system in Krieger look at each other they stand up and shake Zuckerberg's hand barely holding I contact will be in touch everyone watches as they leave the room the next day Zuckerberg gets a message it system in Krieger they're resigning Zuckerberg is going to get his way even if it means forcing out anyone who stands in his path and that includes company founder yeah and there's more bad news Zuckerberg opens another message it's from the head of Security Zach we found something some facebook accounts were compromised compromised how hackers were able to take over users account how many if eighty million the blood drains from Zuckerberg's face this news could not have come at a worse time facebook has been back attard on every side for its data breaches and now this how do they get in they exploited to bugs in the USB you're the view as Vija lets users check what bits of information other people can see about them ironically it was introduced to give users more control facebook's engineers get to work fixing the bugs politicians are already calling for facebook to be regulated so rather than try to hide the problem as he had have in the past Zuckerberg decides to involve the feds early to fend off the criticism he knows is coming he called Sheryl Sandberg and tells her get in touch with the FBI and Cheryl we're going to need to tell the press okay we need to get out in front of this Oh on September twenty eighth facebook summons reporters for a call Zuckerberg takes a deep breath and lays."