CEO: Zuckerberg holds his own in hearing.
With the eyes of Silicon Valley, Washington and Wall Street focused on him, Facebook CEO Mark Zuckerberg on Tuesday successfully stood up to sometimes tricky questions from senators on topics from privacy scandals to foreign election interference to the tech industry’s political leanings.
No matter how you look at it, Zuckerberg, the 33-year-old billionaire, profited from sitting for five hours as the lone witness before a joint session of the Senate’s Judiciary and Commerce, Science and Transportation committees.
Investors apparently liked what they heard. Facebook’s stock price on Tuesday rose about 4.5 percent to $165.04 per share. That boosted Zuckerberg’s net worth by $2.8 billion, according to Bloomberg.
Zuckerberg remained confident, prepared and on message — far from the sweaty, nervous mess he became during another public appearance about privacy issues eight years ago — during the first of two consecutive days on the hill. He’s set to testify again Wednesday when he appears before the House Energy and Commerce Committee.
“He’s doing better than most CEOs do in front of Congress,” said crisis communications expert Gene Grabowski, a former Capitol Hill journalist and now a partner in the
“He’s doing better than most CEOs do in front of Congress. He looked prepared. He didn’t look rattled. He looked better than CEOs twice his age.” Gene Grabowski, crisis communications expert, Kglobal
Washington, D.C., public relations firm Kglobal. “He looked prepared. He didn’t look rattled. He looked better than CEOs twice his age.”
“Zuckerberg’s performance was a mix of awkward, incisive determination, and part servile puppy dog,” said Eric Schiffer, a crisis and brand management expert and chairman of Reputation Management Consultants of Los Angeles. Despite that, Schiffer added, “Zuckerberg did go a long way to stop the hemorrhaging.”
That may still be a good outcome, considering the circumstances of Zuckerberg’s summoning to Washington. Lawmakers called for him to answer questions about how the Menlo Park social-networking giant has handled the brewing scandal around Cambridge Analytica. Facebook has said as many as 87 million users, out of its 2.2 billion members, might have had their personal data improperly accessed by the British data-mining firm that worked for President Trump’s election campaign.
For the most part, Zuckerberg stuck to his message that he and Facebook did make serious mistakes dealing with Cambridge Analytica, but were now doing their best to rectify the problems. When he couldn’t answer specific questions, such as exactly how many fake accounts the company removed while investigating Russian election interference, he deferred by promising he would direct “my team” to follow up with the answers.
He eschewed his trademark hoodie in favor of a conservative dark suit and Facebookblue tie, in line with the standard Washington uniform.
Hours of prehearing training by legal experts paid off. Zuckerberg came off looking better than some of the senators, whose questions were likely written by staff members who knew more than their bosses about technology, Grabowski said.
“These senators wouldn’t know a bot from a banner ad,” Grabowski said.
For the most part, Zuckerberg remained courteous yet expressionless even when the questions from the 44 senators ranged far beyond just the privacy scandal, including whether diet-product advertisers could target teenagers struggling with their weight or whether Facebook would consider an ad-free, paid version.
At one point, he explained to Sen. Bill Nelson, D-Fla., how he could control whether he saw ads for chocolate if he commented about chocolate on Facebook. And Sen. Joe Kennedy, R-La., said Facebook’s “user agreement sucks” and admonished Zuckerberg to “go back home and rewrite it in English, not Swahili, so the average American can understand it.”
The toughest questions were political, not technical. Sen. Ted Cruz, R-Texas, tried to get Zuckerberg to step on a land mine when he asked him to comment on how a “great many Americans” viewed Bay Area tech companies like Facebook as having a “pervasive pattern” of “bias and political censorship” against conservative views and causes.
Zuckerberg acknowledged that Silicon Valley was an “extremely leftleaning place,” and that it was a fair concern “that people would have at least wondered about.” But he said he was “very committed to make sure Facebook is a platform for all ideas.”
Cruz brought up the sudden ouster of Oculus VR founder Palmer Luckey, creator of a virtual reality headset who sold his company to Facebook in 2014 for $2 billion. Some months after it was disclosed that Luckey had financed a conservative anti-Hillary Clinton, pro-Trump group called Nimble America in 2016, Luckey quietly left the company.
Facebook has not formally acknowledged Luckey was fired. But when Cruz asked why Luckey was fired, Zuckerberg said, “It was not because of a political view.”
The hearings may result in the introduction of laws regulating social networking, and Zuckerberg — trying not to appear defensive or arrogant, as some critics have painted him — said he was open to some regulation.
“My position is not there should be no regulations,” but the real question “is more what are the right regulations,” he said.
Zuckerberg has come a long way since his infamous 2010 appearance on stage at the D: All Things Digital conference that drew an audience of tech-industry leaders. Zuckerberg squirmed and sweated profusely when he was grilled by conference hosts Walt Mossberg and Kara Swisher about Facebook pushing its members to share more private information on the network.
One pundit called it Zuckerberg’s “Richard Nixon moment.” After Zuckerberg broke into a flop sweat, Swisher had to coax him to remove his hoodie and cool down.
Daniel Ives, head of technology research for GBH Insights, said Zuckerberg’s testimony was key not only for Facebook, but for Internet companies like Google and Twitter that also might face new regulations from Congress.
“This is the most pivotal 48 hours of Zuckerberg’s career, and so far he is performing above expectations, and the Street is showing a sigh of relief,” Ives said in an email.
“Zuckerberg looks confident and is a stark contrast to the fears this was going to be another Rocky movie with a Congressional beating,” he said in an email. “Facebook needs to navigate through these hearings with a path for slight to moderate regulatory oversight versus heavy handed regulation, which is the fear of investors.”