Facebook’s CEO Mark Zuckerberg is no longer the world’s third richest person as his company loses over $7 billion. Founder of the tech giant company, Facebook became about $7.2billion poorer after companies stopped advertising on Facebook platform. Facebook is arguably the biggest social media platform in the world where companies, groups, NGOs, individuals etc. run and promote their businesses. This is how the company makes money, through ads.
Shares of Facebook fell by %8.3 on Friday, the highest in three months after companies including Unilever one of the world’s biggest advertisers boycott the social media network. According to Bloomberg, “Unilever would stop spending money on Facebook’s properties this year”
Facebook has been criticised for failing to sufficiently police hate speech and fake news on its platform. Others companies from Verizon Communications Inc. have all stopped social media ads after growing criticisms. Biggest beverage company, coca cola says it would also pause all advertising payments on social media platforms for 30days.
The development eliminated $58billion from Facebook’s market value and has dropped Mark Zuckerberg’s net worth to $82.3billion according to Bloomberg billionaires index. Dropping Mark to forth position on the world’s billionaires list. He has been overtaken by Louis Vuitton’s boss, Bernard Arnault who now occupies third position, coming after Bill Gates and Jeff Bezos.
Mark Zuckerberg said on Friday the company is taking appropriate measures to find a lasting solution to the problem.