Recent changes to Facebook have cost Mark Zuckerberg an eye-watering $3.3bn (£2.4bn) from his personal fortune.
Don’t go thinking that Mr Zuckerberg’s going to be left destitute anytime soon though, as despite losing enough money to bankrupt an entire nation it only represents a drop in 4.4 per cent of his net worth.
So what caused Mark to lose that much money? Well, changes to Facebook’s news feed, which will prioritise posts from family and friends over businesses went public on Thursday.
The resulting fallout caused the site’s share value to drop by four per cent and by the close of business on Friday the website’s shares were trading at $179.37, down more than 4.4 per cent on Thursday’s price of $187.77.
According to Forbes this means that Mark would have personally taken a hit of $3.3bn.
Commenting on the recent changes to the site Mark explained:
We built Facebook to help people stay connected and bring us closer together with the people that matter to us.
But recently we’ve gotten feedback that public content – posts from businesses, brands and media – is crowding out the personal moments that lead us to connect more with each other.
Based on this,” he added, “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.Getty
Some critics, however, believe there’s a more sinister reason for Facebook encouraging people to share more of their private lives on the site.
They believe that Facebook is facing a phenomenon known as ‘context collapse’ which basically means that as users share less about themselves online the data that Facebook sells to advertisers becomes less valuable.
By encouraging people to once again share personal information on the site they may be able to increase Facebook’s commercial value.
Unfortunately for Facebook though, the markets reacted badly to the news causing the loss in value.
Mark will be glad to hear however that experts believe the dip is only a blip and his shares will recover in value.
In addition, it’s worth noting that this time last year Facebook shares were only worth around $127 (£92) so the company’s value is still up by more than 40 per cent.