The suspended chief executive of Cambridge Analytica said in a secretly recorded video broadcast on Tuesday that his UK-based political consultancy’s online campaign played a decisive role in U.S. President Donald Trump’s 2016 election victory. This was reported by Reuters.
“CEO Alexander Nix’s comments, which could not be verified, are potentially a further problem for Facebook Inc as it faces lawmakers’ scrutiny in the United States and Europe over Cambridge Analytica’s improper use of 50 million Facebook users’ personal data to target voters,” the message says.
The social media network’s shares fell for a second day, closing down 2.5 percent, as investors worried that its dealings with Cambridge Analytica might damage its reputation, deter advertisers and invite restrictive regulation. The company has lost nearly $50 billion of its stock market value over the last two days.
Cambridge Analytica’s board of directors suspended Nix on Tuesday, shortly before the second part of British broadcaster Channel 4’s expose of the firm’s methods.
In the program Nix describes questionable practices used to influence foreign elections and said his firm did all the research, analytics and targeting of voters for Trump’s digital and TV campaigns. He also boasts he met Trump when he was the Republican presidential candidate “many times”.
Nix’s comments “do not represent the values or operations of the firm and his suspension reflects the seriousness with which we view this violation,” Cambridge Analytica said in a statement on Tuesday.
Cambridge Analytica has denied all the media claims and said it deleted the data after learning the information did not adhere to data protection rules.
As it was reported earlier Facebook's Mark Zuckerberg lost $5.1 billion the day after Cambridge Analytica's data misuse was revealed - nearly 7%, through 1 pm Eastern Time on Monday, erasing $37 billion of market value. The decline had the biggest impact on Mark Zuckerberg, Facebook’s co-founder and CEO, whose net worth fell $5.1 billion, according to Forbes.
Zuckerberg, who owns about 16% of Facebook's shares, is now worth an estimated $69.5 billion, according to Forbes’ real-time rankings of the world’s billionaires. He is currently the seventh-richest person on the planet, down from fifth, after falling behind Zara co-founder Amancio Ortega and Carlos Slim Helu, Mexico’s richest person.