FIRST AIRED: December 23, 2018

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Transcript

00:00:00
>>
MUSIC]
00:00:03
This has been an intense year.>> 2018 was a terrible year for Facebook. It started with the revelation that Cambridge Analytica British political consult firm had gotten their hands on data of about 87 million Facebook users through a third party, this company that built a quiz app. That started a downward spiral this year for Facebook.
00:00:25
>> When you discovered the Cambridge Analytica, why didn't you inform those 87 million?>> As you saw in US Congress dragged Facebook Chief Executive, Mark Zuckerberg, to Washington for two days of hearings. Ten hours, nearly a hundred lawmakers pressing him with question after question about his business practices.
00:00:46
Facebook responded with a big advertising campaign, apologizing for the role it played during the 2016 election and for the Cambridge Analytica breach. But a lot of that good will was wiped away a few months later when Facebook suffered another breach, this time 29 million Facebook users having some of their private information divulged.
00:01:08
And then Facebook suffered just days ago yet another breach. So there still a lot of anxiety among law makers and a lot of concern from the public. You saw the delete Facebook movement, where users started bullying Facebook. Another big moment came in their second quarter earnings haul in July, when Facebook said that their profits would crumble over the next couple of years, because they're spending so much money to improve their defenses, to deal with all of this political scrutiny.
00:01:39
And so Facebook suffered the single biggest one day decline in its share price and shares still have tumbled, continues to tumble in the last couple months down 20% this year. 2019 could put a lot more focus on corporate governance of Facebook. There's been a lot of calls this year for Mark Zuckerberg to step down from his Chairman role and remain just as Chief Executive and for Facebook to install an independent chair person.
00:02:05
Calls for that could grow in 2019 if Facebook doesn't start demonstrating that they have their house in order.>> That's probably an understatement