>> This is an important moment.>> Facing blistering criticism for its role in eroding the news industry, Facebook announced Tuesday, it will invest $300 million in helping revive it. Some of the money will go directly to nonprofits while the rest will go towards funding reporting grants for local newsrooms and a project to help publishers turn readers into paying subscribers.
This is much different from earlier investments by the social media giant which were designed to encourage publishers to rely on Facebook to deliver its products. But while the latest round of funding is meant to show Facebook's support for the industry, damage from the social network has been done.
Newsroom's partly blame tech giants like Facebook for their decline, snagging billions of dollars in ad revenue as advertisers followed the eyeballs. And where were people spending their time? Facebook. Now, Google and Facebook dominate the online ad market. And, if this initiative sounds familiar, that's because last year, Google said it was also going to spend $300 million dollars to support journalism.
For Facebook, this comes at an uncertain time as it attempts to recover from issues ranging from privacy scandals and its role in the spread of fake news.