i'm ana cabrera. have a great week ahead. hi, i'm mark zuckerberg. founder of facebook, an online social directory. >> built in a college dorm room. >> we were hoping for 500 people. >> a digital world of 2 billion plus. >> it's facebook's world. we're just living in it. >> it's an extraordinary thing. >> et we blinked and facebook became a part of the the fabric of society. >> the arab spring online and on facebook. >> but things got complicated. >> it was one of the first privacy scares.

>> the site under fire. >> the era of the wild west in social media is coming to an end. >> sharing private data. >> the largest security breach in facebook history. >> manipulated by foreign governments. >> details about the extent of facebook's role in russia's election interference. >> used to spread hate and lies. >> fake news. >> leading questions about the platform. >> you have users asking maybe i should dloet it. >> what does it truly mean to connect the world? >> our mission has really always been to connect the world. >> we can connect the whole world. >> there's always a catch 22 whenever you're giving a voice to people who didn't have a voice before. >> did making money get in the the way of the mission to ultimately connect the world? >> we search for answers, rare interviews to facebook insiders. >> we pushed the boundaries too far.

>> who feel powerless to tell the truth. >> politicians, critics and exclusive interviews with the creator of it all. >> did you ever question yourself? >> oh, yeah. >> we go behind the walls of the sprawling campus during the company's most pivotal moments. >> facebook on the defensive today. >> senior tech correspondent got this exclusive interview. >> mark, what happened? what went wrong? >> this is a cnn special report. facebook at 15, it's complicated. >> it's october 19th, 2018, and we are heading to facebook. this is a really big deal. we're going to sit down with mark zuckerberg, who rarely sits down for interviews. >> facebook years are like dog

years. a lot happens in a little time. in the months since i first walked through these doors. >> 50 million facebook users have been targeted by hackers. >> the largest security breach in facebook history. >> facebook on the defensive today. suffering this damning report of how facebook handled bad pr. >> we'll get to all that later. >> but for now, back to facebook and what you need to know about an interview with mark zuckerberg. first, he likes a room cold. very cold. turn the cameras around and you'll see his people on the other side taking notes, scribbling, keeping time. they know that the stakes are high these days. the whole world seems to be watching. and that's facebook in this current moment. constantly influential. >> mark zuckerberg under fire. >> in flocks and controversial.

but to fully understand facebook of today, you have to go back to the beginning. >> hi, i'm mark zuckerberg. founder of facebook, an online social directory. >> that was really good. give a smile. >> thanks. >> the early days of facebook were very scrappy time. there have been some constants through the years. the mission of the company of connecting people and bringing people together, that informed some of the most important decisions that we have made. >> you're going to hear this phrase the mission quite a bit. mark's mission is the mantra at facebook. >> our mission has always been to connect the world. >> we're a mission-driven company. >> our mission is to connect everyone in the world. >> connect. >> we can connect can the whole world. >> it was in the company's dna from the the beginning. >> people have been drawn to the peop company. >> if you're an employee you

hear it the moment you walk through the door. you're almost indoctrinated in it. >> he believed in the mission of facebook to help people share and be more connected. and i wanted to follow him. >> it just felt so different from anything i'd done before. >> mark had this vision that everyone could be connected. and that was pretty exciting. >> what's on your mind? >> inside facebook headquarters, that message to build out the mission is everywhere. inspirational quote posters line the walls. with delicate phrases fine tune ed to facebook's current side. some call it almost like a cult. is this the cult of mark zuckerberg? >> i think a cult of personality is a little steve jobs, open pra ter oprah territory. >> cult of mission is what facebook is. that's still very much around and that's why people look to

join facebook. >> the full formal mission statement. >> the mission is clear. as is is one other thing. to understand facebook at 15, you have to understand its dna. and its dna is mark zuckerberg. >> after just spending his entire childhood growing up with three sisters, he's like i got to just connect with other people. >> mark's older sister rarely gives interviews about her brother and facebook. >> we were always invent iing, collaborating, looking for any technology we count find and using it to create something bigger. >> what? >> i got accepted. >> are you serious? >> yeah. >> all right. >> creating solutions to problems yet to be seen was in the mark zuckerberg blood. ask would morph into the mission when mark left home. >> we are now focusing on one of the newest members of mharvard'

class of 2006. >> its roots were quite trivial and controversial. mark's first project at harvard was face match. it was a hot or not style by create iby hacking pictures from i.d. files. >> they could see students and vote for which one was more attract i-. the site produced a list of the most attractive people at harvard. >> global editor in neef nicholas carlson. >> very offensive and people got upset. zuckerberg was hauled in front of the disciplinary board and admonished for this. but at the same time, that project revealed that mark zuckerberg completely understood what people wanted to do in social media. >> what do you mean? >> that people when they voted, they voted on average 44 times. which means they were addicted to the site. >> programming a platform that it played into the best and worst of human impulses, that became familiar later. but in the meantime, it didn't

take long for harvard to shut down the site. mark actually became a celebrity on campus. >> i was like, oh, mark, you kind of probably put that out there and didn't really think it through that well. but i mean, he always saw a need for something and his gut instinct was always, let's get this out there and then make it perfect. >> this idea of creating and breaking in the name of connecting would be a theme that would only amplify a decade later as the stakes got higher. but 15 years ago at harvard, it motivated mark zuckerberg's next life changing creation. >> somewhere along one of these path wways might have been wher the idea for facebook started. >> harry lewis was mark's computer science professor and a dean at harvard. when the students arrived at campus in the fall, they were

handed a facebook. >> it was a book of faces and names and hometowns basically. that's all it is. there were some computer science students eager to put the facebook on loin. this was not necessarily a simple thing to do. and then somebody did it any way. without our involvement. >> that somebody, mark zuckerberg. >> he walked up to the registrar's office. can i help you and volunteer as a student to digitize this? they said no. i think it was almost a little bit of maybe you just don't get what i mean. so let me just go home and do it. and show you. >> i want to meet that person who said no and give them a hug because if they had the business foresight to say yes, none of this would have ever been create canned. >> february 4th, 200 4. facebook went live. within 24 hours anne estimated

1200 students had had signed up. they had 100,000 users. a pretty meet york rise. mark's mission was born. he was just 19 years old. >> we're hoping to have many more universities by fall. and doing that would require a move to the epicenter of tech. silicon valley where mark found more space, more money and more controversy. >> the news feed controversy. people hated it. thaeey were really upset. >> that, when we come back. ♪ ♪ ♪

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i made facebook. >> summer 2004. mark and his co-founder left kam cambridge and moved to what's now become the legendary facebook house. >> he went to california and got a house and it was a crazy house. a zip line went over the pool. >> shall we? >> it was here a lot of the earliest decisions were made. i took the tour years ago and, yes, there was a tour. >> life is just coding? >> it is basically coding. >> at the time, the site was exploding. a million users. and the company had little money in the bank. so the crew was making the silicon valley venture capital circuit in their own way. >> you hear stories of him and his team going to vc nz their pajamas and showing up late and being rude. he was i'm young, rules are for adults. get to work. they used to have a sign that said move fast and break things.

now it says move carefully and don't break things. if you break thing, sometimes you break the country. >> this was long before the facebook backlash. in this 05 the group moved to their first office. >> it was just a bunch of kids who were living out a continuation of their college experience. >> naomi was one of the early et employees. >> it was a above chinese restaurant. we would order chinese food, come into work at like 2:00. had college hours. work all night until 8:00 in the morning and go home and crash. >> mark recruited his oldest sister who was skeptical. >> facebook was so early. who was i to think that was going to be the thing that stuck? >> he was just like, if you just come out and see what we're working on, you'll change your mind. >> and she did president at 471 emerson, she negotiated her salary, with her brother.

>> his initial proposal he wrote out was this tiny salary with like a good amount of stock options. i didn't know anything about stock options. so i remember i crossed out the stock options and doubled the salary. i was like, no, that's what i want. and he crossed it out again and wrote his initial offer again and just said, trust me. and pushed the napkin across the table. i was like, all right, i'm going to trust you. >> back then, cash was tight. they barely had enough to keep facebook online. >> a router tocosts tens of thousands of dollars and we didn't have that. so we went on ebay and bought a used router. that was like $4,000. et we need a car to lug servers. we went on craigslist and bought this 1994 ford explorer. there was something wrong with it. you didn't need a key to turn it on.

>> i have so many memories of sitting in a parking lot of mcdonald's with mark and eating chicken mcnuggets. >> fast food was all they could afford those days. dave was an early facebook employee. and the architect of many of facebook's most influential features. >> we did it a lot. we did it a lot at 12:00 at night, it can in the morning. the ideas were just so interesting and so powerful that the conversations just went late into the night almost every single day. >> in the evenings, he would play board games with zuckerberg. >> how was he as a game player? sdwl they say this about chess masters. they are able to see three steps ahead or the best chess masters can see five games ahead of you. >> that long-term strategy helped zuckerberg turn down an historic offer to buy facebook. it was june 2006.

an offer of a billion dollars was made. at the time, it seemed incomprehensible. >> most of the management team thought we should sell. i had one late night conversation with a closest advisers where he sat me down probably 11:00 and said if you don't sell the company, you're going to regret this decision for the rest of your life. it was just really intense. >> what did you think when he said that? >> when dustin and i made the decision to not sell the company, within b 18 months, every single person on the management team left. >> did you ever question yourself that you were making the right decision? >> oh, yeah. i was 22. i didn't have an exact plan of what was going to happen. it was incredibly scary. >> is it scary, arrogant? >> it's all of those things. it's this wild cocktail of vision, will power, the ability to get up in the morning and build the damn thing, a little bit of arrogance, a little bit of confidence and saying, you know, thank you, but i believe

something else. >> an arrogance that many have said led facebook into some of the serious troubles it's facing now. but then, it was the vision for what would come next that played out three months later. september 2006. the birth. of news feed. >> people would go to a profile and the next and the next and facebook is like, a ha, we need to actually bring this altogether and show you what's going on with your friends. especially those friends that are most important to you and that was the dawn of the famous algorithm. >> newsfeed would overhaul the site. >> here i am gearing up for this fantastic launch and all the engineers are so excited. >> facebook's former pr director remembers how everything changed in a minute. >> we saw this group that became a million people protesting against news feed using news feed. because the way the product was

working, as we all know now, was circulating into everybody's feed and they were clicking on it and joining the group. so we were like, oh, my gosh, they are using our product to protest our product. >> the backlash was extreme. >> the phone started ringing off the hook. thousands of e-mails of people s saying, what have you done to my facebook? >> they were alarmed by facebook taking their activity and publishing it. it was one of the first privacy scares on facebook. >> but news feed survived and it thrived. >> ultimately it became the thing that is of core facebook. it's not the core of facebook, but every social media application. >> it was facebook first hint of privacy issues. down the line, the stakes only got higher as the platform connect canned the world. but the next innovation would fundamentally change facebook

and society. it had great potential to connect the world and also tear it apart. that, when we come back.

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i work at the network operations center for comcast. we're working to make things simple, easy and awesome. welcome to december 2007. also known as that time facebook ruined christmas. >> there was a guy who bought a diamond ring for his wife and it flashed on the sdreen. >> it was facebook's first big

privacy scandal. >> thousands were outraged. ticked off by facebook's first real attempt at making money. it was an ad product called beac beacon. >> they can log in using your facebook identification and then when you buy. something, all your friends are going to find out about it. facebook is like this is such a cool way to get involved in commerce and not be doing boring advertise iing. >> to say they got it wrong was an understatement. >> it blew up in their faces immediately. you don't want people to know what kind of underwear you're buying. >> this soon after the news feed outrage. but like many bets that paid off, this was different. >> the story of facebook beacon is the time where facebook got. really brilliant. >> it was one of the darkest moments of my time there. >> facebook's head of public relations was dealing with the backlash. >> i think we pushed the

boundaries and we pushed them too far. >> good afternoon, facebook, how may i help you? >> the company debated how they handle the outrage. >> there were just different points of view within the company and they ranged from the engineers who felt strongly in it to the sales reps who had something new and unique to sell. to the privacy advocates. >> what was mark saying at the time? >> i think he was among the people initially that were advocating to keep it with the belief that there might be a way to keep it and create it so that some people could use it if they wanted to and some people couldn't. >> there were 67,000 people who signed an online petation to complain about this. >> we didn't move fast enough and et we broke some things in the process. we broke user trust in a big way. that time around. >> it was a privacy and pr disaster.

it took the company a motto react. >> facebook yesterday apologized and said that now you can entirely opt out of this program. >> but the loss of trust was damaging. it was officially time to bring in the operator that many believe zuckerberg needed to run facebook. that person was sheryl sandberg. but geting her to come to facebooken wouldn't be easy. she still had a big job at google. so they couldn't be seen together. we spoke to her a new report now questions her leadership. >> we couldn't go to his house because he literally had an apartment that was one room with a fuse ton on the floor. i don't think he even had a chair. so he came to my house for d dinner. he would show up after my kids went to bed and i would have to kick him out and say, okay, it's 11:30. i need to go to bed. leave. >> at the time, you're 38 years old. you're managing 4,000 employees

at google. >> leaving for a company that barely had any revenue and felt this was the opportunity. >> i felt like it was a great opportunity. >> a lot of people said to me, what are you doing? facebook was really small. it didn't seem to be growing convictly. i told them to work with and for somebody i really believe in who i think is trying to do something really important. >> she immediately became my hero and the hero of all the women at facebook. there were so few of us back then. and on et her first day she came around and introduced herself to everyone. >> what did you say to her? do you remember? sdwl i'm so glad you're here. like thank god. >> those early years with her at the helm would lead to tremendous growth. as would facebook's next move. >> i remember sitting in that room with him and him drawing on the board these sort of circles. and then like these connected lines. and it was kind of like a map

all the some point. there were sort of this visual. he was trying to. capture what it was. and then we were having a conversation about, well, should we call it a social map. >> it would eventually be called platform. >> it was the first time that facebook was opening the site to allow outside technology companies and/or individual developers to build something that would work with the site. >> it would prove to be one of the most important moves the company made. and down the line would lead to fundamental questions and concerns about how the company handled user data giving third party. dwoerps the ability to create their own applications by accessing facebook user data. >> facebook platform is why you can follow your friends' play lists. it's why you can see your friends birthday on your calendar and remember. the early form of platform was sharing more data.

>> the architects were focused on the good as it went live in 2007. >> we were talking about improving the world of education. we were talking about improving health care. we were talking about enabling people to discover their friends and more importantly to discover people that were like them no matter where they went. and then we launched and things went much faster than we expected. >> in what sense? >> within two days, there were applications that had over a million users. which at the time had never been seen before on the internet. >> it was a moneymaker the moment it went live. and would lead to tremendous innovation and growth, but years later it would become the root of one of the company's biggest scandals. that, later. but first, mark zuckerberg gets the hollywood treatment. >> if you were the inventors of

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facebook is now considered to be the big one. >> it's the hottest web address there is is. >> facebook was creating history. hitting a half a billion users by summer 2010. but that history came with a controversial founding story. >> we certainly see a person who is where he is today absolutely because we approached him with our idea, our business plan and two years worth of work. >> it began a week after the

facebook launched in 2004. back in massachusetts. with two of mark zuckerberg's college classmates. >> we first learned about facebook and mark zuckerberg launching by reading the harvard student newspaper. we were shocked. we were totally blind sided. >> blind sided they say because they initially hired mark months earlier to build their social network. they claimed mark agreed to work with them but stalled their project while he built his. >> we were in a partnership and then he used his skill set to basically self-deal in his own interests and take the entire project from us. >> so they decided to sue. the would wind through the court for years. >> the lawsuit, for me, was like a little gnat flying around my head for years. you're just like, ugh. >> brandy was playing defense. >> we're in silicon valley. people are inventing things left and right.

why weren't the myspace founders upset? or suing us at the time? they had 100 million users. when we had 10 million. he did not steal the idea. >> facebook strategy was to ignore and keep building. and when asked, denied. >> we know we didn't steal any ideas or code. so we're just kind of waiting until that comes o out in court. >> in 2007 a judge called their claims tissue thin and called the agreement dorm room chitchat, which the judge ruled does not make a contract. by 2008 the twins settled for $65 million. >> what facebook did throughout the entire litigation was suppress and withhold all of the smoking gun electronic communications of mark zuckerberg. >> the communications that et eventually leaked because of beside insiders nicholas karlson. >> you presed someone. someone wanted you to have these

instant messages and e-mails. >> these e-mails plus texts were never before seen communications from mark zuckerberg during his harvard days. >> i hate working under other people. i feel like the right thing to do is finish the facebook and wait until the last day before i'm supposed to have their thing ready and be like yours isn't as good. if you want to join mine, you can. his friend says, have you decided what your going to do about the websites? he says, yeah, i'm them, probably in the ear. >> they were a peek into mark zuckerberg. >> he's like "game of thrones" character who is going to cackle in front of the camera about how he's throwing heez peopthese per the bus. to me, it's like fantasy business. here he is a 19-year-old talking about something that is kind of like maybe a hobby, but ended up

being really huge. >> and while these are the words of a 19-year-old college kid, what do they say about mark zuckerberg? >> i think that there's a killer instinct this. he's willing to go for it and he's willing to go through people to get what he wanted. that was obvious from the second he started the site. and that became something as evident in how he ran his company over years. he was unsentimental about moving out executives who were not perform iing. in the end, it served him. he churned his way through people until et he got to sandberg, who helped take the company from a startup to the global that we see it now. >> they are saying we stole facebook. >> i know what it says. >> did with we. >> the drama was about to become a major motion picture. before the movie came out, facebook was determined to show the public a different leader than the one about to be

portrayed. >> we're really just focused on our mission. >> he went on a media tour. and donated $100 million to help schools in new jersey. >> $100 million challenge grant. >> you have part of my attention. >> when the movie came out, there was nothing charitable about mark's portrayal. >> my colleagues and i are doing things that no one in this room are creatively capable of doing. did i adequately answer your condescending question? >> the movie, how did you feel watching yourself being portrayed as a bit of a jerk. >> oh, come on. saved by the bell. you get to take a peek. >> it was tough. >> you don't need a forensics team. if you were the inventors of

facebook, you would have invented facebook. >> i wish no one made a movie about me while i was so young. that was so early in the journey. it mischaracterized so much of what we were doing. one of the things that's tough is it set the first impression for how people think about me and the company. that's unfortunate because the movie made up a lot of stuff. the whole idea we started the company because we're trying to make money or i was trying to find a girlfriend or something like that, i was dating priscilla at the time. >> have you two not met? >> no. >> awkward. >> while he tried to laugh off the movie -- >> facebook's privacy policy is the issue here. >> you might have found you were connecting with more people than you bargained for. >> there's nothing funny about something else that happened in 2010. >> you feel like you're violating people's privacy? >> there are real learning points along the way. >> mark was in the hot seat again. >> you want to take off the hoody? >> no. >> after the company changed its

sethings without users' knowledge. >> i like to say the devil is in the defaults. and the default changed from private to public. so that meant that a large amount of the content that users had on their profiles, their likes, is and these types of things were no longer private and were public. >> the move was in line with the mission to connect the world. it left users open to share more information. the sub text, more user data, more potential to make money. >> people running from facebook over privacy concerns. >> the backlash was tremendous. >> we are here today to urge facebook's creator and ceo mark zuckerberg to revisit this new policy as soon as possible. >> this morning an about face by facebook. >> they simplified the privacy settings putting users in control of how much data they shared. at this point, facebook was a rocket ship. >> could be one of the biggest

public offerings ever. >> these were the golden years and most anticipated ipo of the decade can was coming. that, when we come back. ♪ ♪ ♪ (clapping) every day, visionaries are creating the future. ( ♪ ) so, every day, we put our latest technology and vast expertise to work. ( ♪ ) the united states postal service makes more e-commerce deliveries to homes than anyone else in the country,

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or are prone to infections. don't let another morning go by without talking to your rheumatologist about xeljanz xr. don't let another morning go by without talking to ♪ (buzzer) ♪ olly. many credited facebook for its roll in the arab spring in 2011. but as with everything that seems to happen with facebook, it's never black and white. >> you don't empower that without empowering other people. so there's always a catch 22 whenever you're giving a voice to people who didn't have a voice before. >> it was winter 2011. mark's sister was at world

economic forum in switzerland. >> i was hosting a whole facebook live there. and i think the minister of tunisia reject ed all of these news outlets because he wanted to talk to people directly on facebook. and that was the moment i was like, oh, my gosh. everything i've been working for is happening. and later that day i sat in a room with all of these religious leaders from around the world and they called on me in the back of the room and said, can you come to the the front for a second? we'd like to talk to you about all these pages we found on facebook where f christianity. and i just, i sat dl and i was like, wow, this is going to be the issue of our time. because it is impossible to provide that mega phone for the minister of tunisia without also providing the mega phone for people to say things that are upset these religious leaders.

>> they soon discovered policing content was complicated. an issue that would only grow as facebook grew. is and moving into 2012, zuckerberg was close to a billion users and gearing up for the massively anticipated ipo. >> questions are coming out. is facebook living up to the hype. >> but there was a problem. smart phones were on the rise and facebook wasn't a mobile first app. it was easier to access it from a computer. so zuckerberg did something atypical. he bought a company during the quiet period. >> why the need to go on a buying spree? >> it was really connected to this whole transition to mobile phones being the main way we use technology. >> instagram was one of the most downloaded applications on the iphone. >> zuckerberg went out and put a huge amount of money on the table and bought inn sstagram.

everyone said that's a bad idea. and actually it turns out to be a brilliant idea. >> they got it cheap. >> this was facebook's biggest acquisition to date. >> as a startup reporter, at time, i had noeever covered a dl so quick or important. >> facebook is going to have to find a way to help monetize this. >> there were a lot of people that doubted whether this was a good acquisition. if you look back now, it makes so much sense. >> it was an investment in facebook's mobile strategy and help bolster the portfolio ahead of the ipo. >> it could be the biggest ipo in history. >> going public is an important milestone. >> with the world watching, everything that could go wrong went wrong. >> stock that picked a bad week to go public. >> when the actual day came, the nasdaq system broke. >> it was a stunner. >> let's do this. >> the nasdaq button was all set up on campus. we're doing a remote to ring the

bell on facebook going public. the bell rings. nasdaq doesn't clear for at least three hours. it's massive. this is the beginning of the wildest period. >> the stock tank ed and continued to for 109 days. >> i mean, it was the definition of roller coaster in every way. >> and during all of this, the one person we didn't hear from was mark zuckerberg. >> it was echoed when mark and sheryl were quiet for three plus days after the cambridge analytica crisis. we're going to build our stuff instead of talking about our stuff. >> until zuckerberg spoke for the first time. it was a highly anticipated interview. >> welcome to techcrunch disr t disrupt. thanks for coming. >> i'll never forget looking off stage and seeing mark zuckerberg

and seeing him take this deep breath and pump himself up. >> there was something so youth ful and nervous about what he was about to go do. >> you ready? >> this is a defining moment. you're an ice skater stepping on for the long skate and have to nail it. >> performance of the stalk has been >> we already see mobile users are more likely to be daily active users of facebook. >> he said, we're going to be focused on mobile. anyone who doesn't bring mocs based on mobile rather than desktop will be kicked out. >> we have almost 500 million mobile users. >> they made the shift and it would pay off. eventually the stock price paid off and zuckerberg's bet on instagram paid off in a big way. his next move made a billion dollars look like a steal. he believed messaging what'sapp would be key for facebook. he offered to buy it for $22

billion. even then, whatsapp founder had doubts. >> this was a tense moment. i have to think about this. i went silent for a few minutes. beast walked into the room kind of confused, what's going on? these two guys are sitting here silent. looks quizzically and jumped into his lap. he looks at him, okay, we're good. >> what facebook didn't see was about to shape its future. >> welcome to the cnn facebook republican presidential debate. >> that, when we come back. it's time for the ultimate sleep number event on the sleep number 360 smart bed. it senses your movement and automatically adjusts to keep you both comfortable. save 50% on the sleep number 360 limited edition smart bed. plus, 24-month financing on all smart beds. only for a limited time. ♪ ♪

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you could put half of trump's supporters into what i call the basket of deplorables. >> we have to beat hillary clinton. crook hillary clinton. >> it was 2016. >> they just announced over between 22 million between twitter and facebook. 22 million people. >> politics realized the importance of facebook. >> and in facebook you likened donald trump to gollum. >> the platform was integral for politics and had been for years. >> i'm the one who got mark to wear a jacket and tie. >> but unnoticed with all that hype -- >> new details about the extent of facebook's role in russia's election interference campaign in 2016. >> a campaign on facebook to disrupt the u.s. election and

divide america was well under way. >> okay. hi, guys. >> meet alex stamos. he's a respected figure in security. >> we survived the last day. >> today is august 17th, 2018. >> tough to say good-bye to folks but i'm glad for what comes afterwards. >> it's the last day he'll call himself chief security officer at facebook. he's been there three years. >> it feels weird to live through history from the inside. naturally, i want to question whether i did everything i could. >> it was stamos' team who discovered russians were weaponizing facebook to influence the election, a pivotal moment for democracy and turning point in facebook history. >> when i was hired, the job was to protect the platform from attack, keep people data safe. now, i'm reading biographies of

putin and taking seminars on disinformation tactics of russian intelligence services. >> it started the spring and summer of 2016. the race for president was in full gear. the facebook security team discovered suspicious activity connected to russian intelligence and reported their findings to u.s. law enforcement. >> why was facebook not transparent as people went to vote in the fall? >> it just wasn't seen as our position to get involved publicly in these massive political issues. in this situation, you know, you do not want to be seen as putting your thumb on the scale one way or the other. >> facebook stayed silent. voters went to the polls in record numbers. >> the astounding upset victory of donald trump j. trump will become the 45th president of the united states. >> soon there after, they were

concerned the platform had been used to spread propaganda and fake news, all of it in order to influence the election. >> facebook cracking down on fake news sites after backlash the made-up stories may have influenced the election. >> reporter: at the time, zuckerberg downplayed it. the idea fake news on facebook, which is a very small amount of the content influenced the election in any way i think is a pretty crazy idea. >> i think at the time i was way too dismissive. i think i reacted and had a negative visceral reaction to the idea people were somehow tricked. >> reporter: by january 2017, a u.s. against report linked the support of hyper partisan fake news to the internet research agency, a russian company with close ties to putin in russian intelligence. >> what they were trying to do was to take the most radical

positions in our society and almost act in a parody of what other supporters of that ideology would believe. their entire goal was reduce discourse and increase anger and divisiveness in the country. >> reporter: the russians took advantage of facebook's advertiser tools based specifically on their interests and even political biases. on top of that the more polarizing and divisive their ads were the more facebook would show them to more people and why fake news and divisive content got a fake booths. >> fake news was a bunch of car crashes. >> reporter: to help companies understand the impact of their algorithm. >> if you're driving on a road and see a car crash you have a lot of evolutionary instincts

that tell your mind, i have to look at the car crash. the way facebook sees the car crash, that's what you want and start feeding people car crashes over and over again metaphorically. that's the product of their business model. >> reporter: the longer people stay on facebook feeds the more money facebook makes. >> their business model is how do i keep people on the street and how do i make the people as easy to influence as possible for the advertiser. the problem if you're not academicing if you have 6 million advertisers cycling through the system, how do you know if some advertisers are iran, russia, china, saudi arabia. >> reporter: in fact, facebook did find russia's internet agency did spend money on ads to target voters. >> the twitter and facebook accounts looked to be run by the same black activists were the work of russians. >> reporter: after denying,

facebook and its colleagues went live. >> certainly we did not have the problem solved yet. i hope it started changing the conversation that facebook and the rest of the tech companies should be honest about bad things that happen on our platform. >> reporter: publicly the company was limited in its transparency. there would be even more revelations later. internally facebook treated the foreign interference like this shift to mobile, all hands on deck and started to increase its security team. by 2018, it would be more than 30,000. but facebook's failure to anticipate and quickly address foreign government influence on the platform put the company on thin ice. >> facebook battling a massive data misuse scandal. >> reporter: the straw that broke the camel's back would come early 2018. >> millions of users had their information improperly obtained by data firm. >> a data firm, analytica

harvested data from facebook users. >> reporter: it was collected before the election. that one research firm went on to help the trump campaign better target voters online. >> personality quizzes, we've all seen them on facebook. >> reporter: the way they got the data was simple, through a personality quiz app taken by 100,000 facebook years. >> we were able to form a model to predict the personality of every adult in the united states of america. >> reporter: music preference, gender, demographics, marital status, likes. >> reporter: what few knew was giving the researcher access to not only our data but our friends' data. this methodology was completely permissible at the time until facebook restricted access at 2015 and developers had more access to our information. these are ethical debates that will impact 2 billion people about the spread of data and

fake news and the platform. >> this is another black eye for facebook. >> reporter: this has users outraged. >> we had people saying, maybe i shouldn't be spending so much time on facebook. maybe i should delete it. >> they feel this caused the election to happen the way it did and why people were angry about it. >> reporter: it all dated back when facebook opened up the platform to developers. >> i think they built something beyond their wildest dreams and extremely powerful in ways they had no idea it could be powerful. >> did you think, oh, no, this was based off the platform you were an early architect of? >> yes. to the answer. i don't think it was something you could have predicted or even thought was a risk. we're talking about a level of nation states and nation state actors. these are countries, right, that have military biggesudgets beyo

what any of us could imagine. >> facebook had the worst day in four years. >> reporter: it was a turn point and facebook's stock price plunged and the anger only amplified as days went by and there was silence from the upper ranks until marc feinly decided to talk. >> senior tech laurie siegel got this exclusive interview. >> what happened? what went wrong? >> when we come back. when i walked through a snowstorm for a cigarette,

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cambridge nan lanalytical i under investigation for its use of facebook's information. >> a lot of people have been asking where is mark zuckerberg, head of facebook on all of this. >> we were slow to respond, took a couple extra days and that was a big deal. we were trying to figure out what happened and we weren't able to do it quickly enough. >> mark zuckerberg is breaking his silence talking to cnn about the election debacle. >> inside that room it felt incredibly tense. >> there is an element of accountability as uncomfortable it is for me to do a tv interview, i think this is an important thing as a discipline for what we're doing. i should be out there and being

asked hard questions by journalists. >> what happened? what went wrong? >> this was a major breach of trust. i'm really sorry that this happened. >> there were previous instances they had the issue of apologies for breaches in the past. this was different. >> senator john thune and much of washington was watching closely. >> we're already contemplating how to proceed in terms of our oversight role and we want to make sure we're holding them accountable. >> reporter: everybody wants you to show up. will you testify before congress? >> i'm happy to if it's the right thing to do. >> reporter: you are the brand of facebook, the name of facebook. people want to hear from you. >> we want to make sure we send whoever is best informed to doing that. >> we took into consideration the statement that he made when you had asked him those questions and then began to more aggressively pursue the idea of having him come in. >> reporter: zuckerberg agreed

to testify november 18th and it started. they built a mock hearing room. >> he worked hard to prepare and was ready. that was as high stage as it gets. >> facebook's ceo, mark zuckerberg, just hours away from testifying. >> it's all historic, the way it was for the tobacco execs in 1994. they had to bring in extra row of chairs for the senators because there was so much interest. >> we're listening. america is listening, and quite possibly, the world is listening, too. >> reporter: and wondering could zuckerberg, who historically had a hard time with high pressure public moments deliver. >> we didn't take a broad enough view of our responsibility. that was a big mistake. it was my mistake, and i'm sorry. i started facebook. i run it, and i'm responsible for what happens here.

>> his performance in front of congress was poised. he had the right answers. i think he did laps around the people there. >> reporter: but part of that success was due to the facts many of the questions asked by the senators demonstrated a lack of understanding about how facebook and tech in general works. >> if i'm e-mailing with an what's app, does that ever inform your advertisers? >> how do you sustain a business model users don't pay for your service? >> senator, we run ads. >> i see. >> it was an embarrassment to the members of congress. it reconfirmed what most of the valley and probably many of the viewers think, that most of these men and women don't understand the basic business model of these new communities. >> was your data included in the data sold to the militia's third parties? your personal data?

>> yes. >> it was. are you willing to change your business model in the interest of protecting individual privacy? >> congresswoman, we have made and are continuing to make changes -- >> are you willing to change your business model in the interest of protecting individual privacy? >> congresswoman, i'm not sure what that means. >> well, i'll follow up with you on it. >> a whole lot of folks didn't know from the data facebook was collecting through your contacts back and forth with friends and others and the news feed you go to was actually being used for political purposes by a political consulting firm that had strong ties to the russians. there has to be a different approach taken in the future. >> an approach many thought would be regulation. after two days of testimony, what kind was unclear. >> you don't want to put a heavy burden on the goose that laid the golden egg. >> social media is not going away, technology is not going

away. i would hope they would work with us. >> reporter: facebook would try to get in front of pending regulation by promising to give users more control of their data and investigating tens of thousands of other apps allowed to collect other data. but the bill came down to one fundamental question. did making money get in the way of facebook's mission to ultimately connect the world? >> i don't think so. the fundamental business model we offer i think is a really good one. it protects people's privacy and it takes a very powerful product that changes people's lives and makes it available for free. if we were to have to charge for facebook like the ad business, a small fraction of the people would be able to use it. >> they would say, how else are we going to connect the whole world if it's not free? i would say if the thing you're connecting the whole world to isn't safe it shouldn't be free. >> reporter: on safe critics

like this say not just because of personal data breaches but also unsafe because of the content that seems unchecked on the platform something congress is worried about on day two of zuckerberg's testimony. >> do we have a responsibility for the content people share on facebook? i believe the answer to that question is yes. >> reporter: it's a fine line as hate speech is ignited, fake news spreads and conspiracy theorists thrive. facebook has to decide what content stays and what goes. >> if there's anything i've learned over the last three years, you can't win. any content decision we make or step we make to do something that sounds not controversial, like protect and election will be portrayed by somebody else as being a partisan decision. >> we believe deeply in free expression. we believe you should be able to express your voice and opinion and we also believe in a safe protected community. >> reporter: that also means giving a platform to fake news,

holocaust deniers, conspiracy, racists, something that could be deadly. >> genocide and crimes against humanity the horrors faced by the muslims living in myanmar. and the defected leader. >> facebook was warned the platform to promote hatred of muslims in myanmar. by 2018, more than 10,000 muslims were killed. according to a united nations report the role of social media is significant. facebook has been a useful instrument for those seeking to spread hate. >> reporter: in places like myanmar, now, we are actually working with those on the ground identifying those things that might lead to real world harm, and we're just taking them down. >> reporter: critics say the company moved too slowly when they were warned.

facebook is investing millions in content and adding millions of content viewers to the payroll and those they hope to identify troublesome material. it's not always clear. >> judging hate speech -- >> reporter: i saw it in this room, a meeting of facebook content policy. a person in question, a woman naming a man accusing him of assault in a facebook post. the group decided to leave it up. >> we had people posting allegations and other people coming forward saying this is harassment, not true. >> reporter: striking a balance how do we frame the policy how people can tell their story and name the person who attack them but never cross the line into bullying or harassment. >> reporter: in this case, it was striking to hear conversations we'd have in a newsroom happen at a tech company. and if not resolved here conversations go all the way up

to the top of the food chain, to mark and sheryl. >> this is like an editor of a newsroom. should you be making that decision? >> i think as little as possible. i focus on designing decisions because there will be billions of content people post everyday and getting it right at a systems level is more important. >> reporter: but with billions of contents hit daily, problems at this scale goes viral and decisions behind the scenes are increasingly scrutinized. in november 2018, i'd be back in campus after a blockbuster report called into question the company's business tactics. that, when we come back. staying at hampton for a work trip. oh no. your new boss seems cool, but she might not be sweatpants cool. not quite ready to face the day? that's why we're here with free hot breakfast. book at hampton.com for our price match guarantee. hampton by hilton.

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it's november 2018. unexpectedly, i'm back on campus. after a blockbuster report raises questions about facebook's business tactics. >> the company hired an opposition research firm linking them to george soros. >> the pr firm founded by political strategists and linked facebook to george soros. this is a common tactic used by semitic and alt-right groups and why people were shocked about it. >> i wasn't particularly happy about that piece of it. that made me want to look into this more deeply. the way they went after george soros, do you approve of that methodology? >> i don't think this is the type of thing our company should

be engaging with. >> reporter: the report also painted a critical picture how the company handle the revelations of russian influence and its growing critics. >> reporter: i've heard you guys talk a lot about transparency but you have reports coming out that say something otherwise. how -- i guess i ask it again, how do you ensure you doin back public trust? >> i don't think the right expectations are that there aren't going to be issues. i think the question is how do we address them? >> reporter: a question the company is struggling with, while they have promised to focus on security and transparency. >> we have more than doubled the people we have working on safety and security. >> reporter: according to the report they not only ignored warning signs, they attempted to conceal them. >> reporter: in the run up to the 2016 election -- >> after we found these things

i'm not totally happy with what the communication strategy was. >> reporter: former security officer, alex stamos found himself in the news again. so we went back to interview him. >> i think we could have been much more aggressive about talking about what we knew right after the election and probably before the election. obviously, there were internal miscommunications. >> reporter: miscommunications that seemingly came to a head in a border meeting fall of 2017, where stamos revealed the company didn't yet have a grasp on russian influence. >> that came as a surprise to sheryl. i had not briefed her on what i was going to tell the board. she got mad at me and in the end the real root responsibility for why these things happened was not in sheryl's control. >> reporter: whose control was it in? >> wasn't measuring the bigger impact and think offering ways to twist it to be misused. in the end, that was mark's responsibility. >> reporter: what was your feeling walking away from facebook?

>> the truth is there is a bit of a "game of thrones" culture among the executives. one of the problems of having a tight-knit set of people making all these decision, if you keep the same people in this same places, it's very difficult to admit you are wrong. >> reporter: the company is powerful. after spending time behind facebook's walls, there was another thing that emerged, folks that had something to say but were afraid to say it. this former employee asked us to protect their identity. >> speaking out against the company is not welcome. there is a career impact where you might get blacklisted and you're not going to get hired. >> reporter: in a company that makes billions, this former employee cites a disconnect. >> people aren't really encouraged to bring bad news to mark because generally mark doesn't handle bad news as well. in a public setting he politely

argues against it in a public setting. he's more likely to really aggressively go against it or challenge the source or to challenge the assumptions to honestly not believe the bad news. >> reporter: facebook is in transition and many employees have left over the company's direction including instagram. and should zuckerberg, the ceo and chairman manned jort shareholder of facebook step aside. chairman and majority shareholder of facebook step aside. >> that's not the plan. >> reporter: would anything change that? >> eventually over time. i'm not going to be doing this forever. >> reporter: many employees you met on the show have left, including alex stamos now teaching future entrepreneurs at stanford university. >> doing better means doing things like this, bringing people together to think about these problems early and not just be reactive. having a real diverse set of

people work on these, work in tech and silicon valley is critical for that. >> reporter: randy zuckerberg is focused on tech in the media. >> how do you as his sister view his impact on creation and whether it's good for humanity? >> he has always been an incredible trailblazer of pushing the boundaries. he sees where he see this world should go. he has pushed a lot of us to think of the world in a bigger more connected way than we ever thought it would be, so for better or worse, mark is not the kind of person who is squwayed what you or i or anyone thinks of him. because of that, i think we're going to get a lot more amazing things out of him in the years to come. >> reporter: at 34, zuckerberg

is one of the most powerful people in the world. he's pledged his fortune to charity and there's no denying people have used facebook to raise over a billion dollars in charitable causes throughout the years. by every metric, facebook is a success. its revenue in 2018, $55.8 billion. it was just $272 million in 2008. but facebook at 15 faces comecated questions, a ripple effect on zuckerberg's mission. is what's good for business good for society? what is the cost of connecting the world? >> right now, the tech industry has been telling themselves this narrative that to connect people if you have a platform for free speech, it's automatically good. the deeper upgrade we have to make is the philosophical upgrade, what does it mean for these things to be good? >> facebook is a living breathing map of society and it's literally a map of every

single person in all the relationships and all the interactions between all those relationships, so in a way, it's messy and human as we all are. >> it is hard to say what any individual can do in these historical forces we're at the intersection of. what happens when you give voice to billions of people for the first time in history? >> do you think we will be on the right side of history when you look back on this period? >> i do. i think it's hard to imagine a future where we give people more power and connect and share ideas isn't a positive thing. >> reporter: although we're at a moment people are watching facebook and wondering, can you do all those things? >> the principle, how do you balance giving people a voice with keeping people safe? how do you make sure you can protect people's privacy and use

information the way people are comfortable with while at the same time being able to build a system to stop bad guys from doing things and provide a service free for people around the world, these are really big historical questions. they're not simple things that have one sentence answers. over time, i really believe being on the side of giving people power and giving individuals a voice and giving people the ability to connect to the people they want to is going to be the thing that wins out. with a digital world of more than 2 billion people, facebook has become part of the fabric of society, revealing both the best and the worst of humanity. for a tech company that has extraordinary human impact, what the next 15 years looks like is unknown. we do know one thing. as we head into uncharted territory, zuckerberg's mission

to connect the world will only amplify, as will the issues that come along with it. x xx x prg >> anthony: miami sneaks up on you. or do we change and find ourselves sneaking up, washing up, ending up in miami? ♪ i took a walk through this