Facebook Plunge: Zuckerberg Loses $7bn in nearly six-hour global outage

Mark Zuckerberg’s personal wealth has fallen by nearly $7 billion in a few hours, knocking him down a notch on the list of the world’s richest people, after a whistleblower came forward and outages took Facebook’s flagship products offline.

A selloff sent the social-media giant’s stock plummeting around 5% on Monday, adding to a drop of about 15% since mid-September.

The stock slide on Monday sent Zuckerberg’s worth down to $120.9 billion, dropping him below Bill Gates to No. 5 on the Bloomberg Billionaires Index. He’s lost about $19 billion of wealth since Sept. 13, when he was worth nearly $140 billion, according to the index.

On 13 September, the Wall Street Journal began publishing a series of stories based on a cache of internal documents, revealing that Facebook knew about a wide range of problems with its products — such as Instagram’s harm to teenage girls’ mental health and misinformation about the Jan. 6 Capitol riots — while downplaying the issues in public. The reports have drawn the attention of government officials.

In response, Facebook has emphasised that the issues facing its products, including political polarisation, are complex and not caused by technology alone though blamed a “faulty configuration change” for the nearly six-hour outage on Monday that prevented the company’s 3.5 billion users from accessing its social media and messaging services such as WhatsApp, Instagram and Messenger.

The error message on Facebook’s webpage suggested an error in the Domain Name System (DNS), which allows web addresses to take users to their destinations. A similar outage at cloud company Akamai Technologies Inc took down multiple websites in July.

“We want to make clear at this time we believe the root cause of this outage was a faulty configuration change,” Facebook said in the blog.

The company in a late Monday blog post did not specify who executed the configuration change and whether it was planned.

“To every small and large business, family, and individual who depends on us, I’m sorry,” Facebook Chief Technology Officer Mike Schroepfer tweeted, adding that it “may take some time to get to 100%.”

Several Facebook employees who declined to be named had told Reuters earlier that they believed that the outage was caused by an internal mistake in how internet traffic is routed to its systems.

The failures of internal communication tools and other resources that depend on that same network in order to work compounded the error, the employees said. Security experts have said an inadvertent mistake or sabotage by an insider were both plausible.

Facebook, which is the world’s largest seller of online ads after Google, was losing about $545,000 in U.S. ad revenue per hour during the outage, according to estimates from ad measurement firm Standard Media Index.

Facebook’s services, including consumer apps such as Instagram, workplace tools it sells to businesses and internal programs, went dark noon Eastern time (1600 GMT). Access started to return around 5:45 pm ET.

Soon after the outage started, Facebook acknowledged users were having trouble accessing its apps but did not provide any specifics about the nature of the problem or say how many users were affected.

The Facebook outage is the largest ever tracked by web monitoring group Downdetector.

The outage was the second blow to the social media giant in as many days after a whistleblower on Sunday accused the company of repeatedly prioritizing profit over clamping down on hate speech and misinformation.

As the world flocked to competing apps such as Twitter and TikTok, shares of Facebook fell 4.9%, their biggest daily drop since last November, amid a broader selloff in technology stocks on Monday. Shares rose about half a percent in after-hours trade following resumption of service.

“Facebook basically locked its keys in its car,” tweeted Jonathan Zittrain, director of Harvard’s Berkman Klein Center for Internet & Society.

Twitter on Monday reported higher-than-normal usage, which led to some issues in people accessing posts and direct messages.

On Sunday, Frances Haugen, who worked as a product manager on the civic misinformation team at Facebook, revealed that she was the whistleblower who provided documents underpinning a recent Wall Street Journal investigation and a U.S. Senate hearing last week on Instagram’s harm to teen girls.

Haugen was due to urge the same Senate subcommittee on Tuesday to regulate the company, which she plans to liken to tobacco companies that for decades denied that smoking damaged health, according to prepared testimony seen by Reuters.

 

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