So as to pacify the investors who are raging because of the slump in the stocks of the Facebook, the company will be buying back its own shares which are worth $9 billion.
Facebook, which is a social media giant has witnessed a fall of about 22 percent in its share prices this year, according to Reuters. However there was an increase of about 1 percent in the extended trading.
The company has announced the buyback plan last year, according to which it will be purchasing back its shares worth $15 billion. This new program is in addition to that plan of Facebook.
The social media giant is being investigated by the lawmakers in Britain after the allegations that the consultancy firm Cambridge Analytica garnered personal information of about 87 million users of Facebook from a researcher and used a this data in the presidential elections.
Cambridge Analytica worked for the presidential campaign of the president of the United States, Donald Trump.
This in turn has rose concerns regarding the safety of such personal information along with the practices of the social media giant.
This also raised fingers to the political adverts, questioning their role as well the possible foreign interference in the Brexit vote which took place in 2016 as well as the elections of the United States.
Such issues are being investigated by the regulators of British as well as the European Union.
This news raised eyes of many and the stock market reacted to it harshly with the prices of the shares of Facebook falling drastically.
While the CEO, Mark Zukerberg has assured that he will look into the matter personally and will strengthen the security system so that a breach of similar type does not happen again, yet the investors are unhappy.
Source: Reuters, Economic Times
