hi, i'm mark zuckerberg. founder of facebook. an online social directory. >> smile. >> you're asking a lot of me. >> built in a college dorm room. >> when we first launched, we were hoping for 500 people. >> a digital world of 2 billion

plus. >> we blinked and facebook became a part of 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 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 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 inventing, 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 harvard's 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 by hacking pictures from i.d. files. >> they could see students and vote for which one was more attractive. 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 pathways might have been where 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 >> february 4th, 200 4. facebook went live. within 24 hours an 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. they were really upset. >> that, when we come back. ♪ don't fence me in. ♪ let me be by myself ♪ in the evenin' breeze,

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i made facebook. >> summer 2004. mark and his co-founder left 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 costs 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 the former p.r. director remembers how everything changed in a minute. >> we saw a group that became a million people protesting against news feed -- using news feed because of 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, and we're like oh my gosh, they're using our product to protest our product. >> the backlash was extreme. >> the phone was ringing off of the hook. people calling 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 thrived. >> it became the thing that is

the core of facebook and the news feed. it is the core of every social media aspect. >> down the line the stakes got higher as the platform connected the world. but the next innovation would fundamentally change facebook and society. and had potential to connect the world and tear it apart. more on that when we come back. tremfya® is for adults with remoderate.

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welcome to december 2007, also known as that time that facebook ruined christmas. >> there was a guy that put a diamond ring for his wife, and all of the people, christmas ruined, he says. >> facebook's first big privacy scandal. thousands were outraged. >> people were really ticked off by the first real attempt at making money. an ad product called beacon. you long into e commerce sights, and all of your friends are going to find out about it, and they're like this is such a cool way to get involved in commerce and not be involved in boring advertising. >> to say they got it wrong was an under statement. >> it blew up immediately, you don't want people to know the underwear you're buying and

more. >> the story of facebook booe c beacon is when they got really dark. >> one of the darkest moments of my time there. >> facebook's head of public relations brapdy barker was dealing with the backlash. >> we pushed the boundaries and we pushed them too far. >> the company debated how they handled the outrage. >> there are just different points of view within the company that ranged from the engineers that felt stronger, so the sales reps that felt new and unique, to privatety advocates. >> what was mark saying at the time? >> i think he was among the people that were initially 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 was 67,000 people that signed an online petition -- we didn't move fast enough and we broke some things. >> it was a privacy and pr i did as sere. and you can entirely opt out of the program. >> but the loss of trust was damaging. it was time to bring in the operator they needed to run fable. that person was sheryl sandberg, but getting her to come to facebook wouldn't be easy. she still had a job, a big one, at google. we spoke to her and a new report now questions her leadership. >> he had an apartment that was a room with a fewton on the

floor, so he came to my house for dinner. he would show up after my kids went to bed and i would have to kick him out and say it is 11:30, i need to go to bed now. >> you're managing 4,000 employees at google, leaving a company that barly had any revenue. >> i felt like it is a great opportunity. people are like what are you doing? facebook is small, it didn't seem to be going that quickly and i said i'm going to work with and for someone they really believe in that i think is trying to do something really important. >> she immediately became my hero and the hero of all of the women at facebook, she came around and introduced herself to everyone. >> what did you say to her, do you remember? >> i'm so glade you're here, thank god.

>> the early years would lead to tremendous growth. as would facebook's next move. >> i remember sitting in that room and he was drawing circles and and connected lines, and it was like a visual that he was vying to cap kwhature what it w and it was like should we call it a social mall? >> it would several be calling platform. >> it was the first time that facebook was opening the sight to allow outside technology companies and or in certain cases individual developers to build something that would work with the sight. >>. >> it would prove to be one of the most important moves the company made and would lead to

concerns about how they use third party data. >> facebook platform is why you can follow your friends play lists if is why you can see your friends birthdays on your calendar and remember. i think 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. of health care, enabling people to discover their friends and people like them no matter where they went, and then we launched and things went faster than we expected. >> in what sense? >> within two days there was applications that had over a million users. which at the time had never been

seen on the internet. >> it was a moneymaker the moment it went live. years later it would become the ruth of one of the biggest scandals. but first, mark zuckerberg gets the hollywood treatment. >> if you were the inventors of facebook, then you would have invented facebook. e, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions and lung inflammation can occur.

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>> hits history and hitting half a billion users by 2010. that history came with a troerl fou -- controversial founding story. >> he is where he is today because we approached him with our idea, our business plan, and two years worth of work. >> it was a week after the facebook launched in 2004. >> we first learned about it and mark zuckerberg launching it by reading the harvard newspaper. we were blindsided. >> they hired mark earlier to build their social network. they claim mark agreed to work with them, but stalled their project. >> he was self dealing in his own interest and taking the project from us. >> so they decided to sue.

the case would wind it's way through the course for years. >> it was like come on. >> once again brandi barker was playing defense. >> we're in silicon valley, people are inventing things left and right. why wasn't myspace suing us, they had 100 million users and we had 10 million, he didn't steal the idea from vinklevoss. >> we know we didn't steal any ideas or code so we're waiting for that to come out in court. >> a judge called their claims tissue thin and said it was dorm room chitchat and that does not make a contract.

the twins settled for $65 million. >> what facebook did was suppress and who wouithhold alle smoking gun communications with mark. >> journalist to journalist, you pressed someone, someone wanted you to have these instant messages, someone wanted you to have these e-mails. >> these e-mails and 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 work until the last day and say yours isn't as good, if you want to join mine, you can. his friend says have you decided what you will do about the websites? and zuckerberg says yeah, i'm going to [ bleep ] them, probably in the ear. >> what went through your head when you first saw the instant messages and e-mails that were

incredibly intimate people into mark zuckerberg. >> he is like a game of thrones character, cackling about throwing people under the bus and trusting them with his project. to me it is like fantasy business. a 19-year-old talking about something that is kind of like maybe a hobby that ended up being really huge. >> while these are the words of a 19-year-old college kid, what do they say about mark zuckerberg? >> i think there is a killer instinct there. he is willing to go through it and go through people to get what he wants and that was obviously from the second he started the sight and that became something as evidence in how he ran his company. he was unsent sentimental. they took that company from a successful start up to what we

know know. >> they're saying we stole the facebook -- >> did we? >> i know what it says. >> it was about to become a major motion picture. >> mark! >> before the movie came out, they were determined to show a different leader than the one they were about to portray. >> zuckerberg went on a media tour and donated $100 million to donate schools in new jersey. >> $100 million? >> you have part of my attention. >> when the movie came out there was nothing chartable about mark's portrayal. >> we're doing things that no one in this room that you or your clients are intellectual capable of doing, did i accurately answer your condescending question. >> how did you feel watching yourself and being portrayed as a bit of a jerk.

>> oh, come on. saved by the bell. so you get to take a peek, but how did you feel? >> it was tough. >> you don't need a forensics team to get to the bottom of this, if you were the inventors of facebook, you would have invented facebook. >> i wish that no one made a movie about me while i was so young. it was so early in the journey and it mischaracterized so much about what we're doing, but it set the first impression for how a lot of people think of me and the company. that is unfortunate, they made up a lot of stuff. the idea that we started the company because we're trying to make money or trying to find a girlfriend or something like that, i was dating priscilla at the time. >> wait, have you two not met? >> no, no. >> awkward. >> while we 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 was something not funny about something else that happened in 2010. >> mark was in the hot seat again. >> do you want to take off the hoody? >> no, i never do. >> girls? >> i like to say the devil is in the defaults, and the default changed from private to public, and that meant that a large amount of the consent that uten on their profiles, it was no long longer. >> they are open to share more investigation, the subject is more investigation. >> people running from facebook over privacy concerns. >> the back lalash was tremendo. >> we are here to urge the

creator, mark zuckerberg, to revisit this process as soon as possible. >> they put users in control of how much data they shared. at this point, facebook was a rocket ship. >> it could be one of the biggest initial public offerings ever. the most anticipated ipo of the decade was coming. that when we come back. everyone's got to listen to mom.

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that can lead to death. ♪ (buzzer) ♪ olly. many credited facebook for their role in the arab spring in 2011, but as with everything, it's never black and white. >> you don't empower that without empowering other people. there is always a catch 22 when you're fiving a voice to people who didn't have a voice before. >> it was winter 2011, mark's sister, randy, was in davos switzerland. >> i was hosting a facebook live

and the minister of tunisia rejected all of these things because he wanted to talk to people directly on facebook and i was like everything that i have been working for is happening, later that day, i sat with all of these religious leaders and they said can you come to the front we would like to talk to you about all of these pages we found on facebook that is like f christianity, f judaism, and i sat there and i said wow, this will be the issue of our time. because it is impossible to provide that megaphone for the minister of tunisia without also providing a megaphone for people saying things that are upsetting these leaders. >> it was an issue that would

grow as facebook grew. >> they were gearing up for the massively anticipated ipo. >> is facebook living up to the hype? >> smartphones 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 what is called the quite period. >> why the need to buy companies? >> it was a transition for mobile phones being the way we use technology. >> instagram was one of the mouse downloaded applications. >> he went out and put a hue -- huge amount of money on the table and sapeople said he was cad. >> a billion dollars, right?

>> i had never covered a deal so big, so quick, and so important. stwl i spoke >> i spoke to someone that said facebook would have to figure out a way to monetize this. >> if you look back now it makes so much sense. >> it was an investment in facebook's mobile strategy and it helped the company bolster their ipo ahead of time. >> going public is an important milestone. >> with the world watching, e everything that could go wrong went wrong. >> facebook face planted. >> when the day came the nasdaq system broke. >> the nasdaq button was set up on campus, we're doing a remote to kind of ring the bell on facebook going public. the bell rings, nasdaq doesn't clear for at least three hours,

it is massive uncertainty. it is the beginning of the wildest period. >> the stock tanked and continued to for 109 days. >> i mean it was the definition of roller coaster in every way. >> during all of this, the person we didn't hear from was mark zuckerberg. >> it was echoed a little bit when mark and sheryl were quite for three plus days after the cambridge analytica priecrisis. >> mark said we're just going to focus on building our stuff rather than talking about it. >> it was a highly anticipated interrue. >> thank you for coming. >> thank you for having me. >> i will remember seeing him take a deep breath and like pump himself up. there was something so youthful and nervous about what he was about to do.

>> there is a defining moment, you're stepping on for the long skate and you know you have to nail it. >> he said we're going to be focused on mobile and anyone that doesn't bring to my office, mocks, prototypes based on mobile rather than desk top, will be kicked out. >> they made the shift and it would pay off. the stock price went up. he made a billion dollars like like a steal. he thought whatsapp would be a key player in the future of facebook. he offered to buy it for $22 billion. even then the founder had doubts.

>> we went silent for a few minutes, and beast walked into the room, and she like what is going on, he looks quizzically and walks up to yan and jumped on his lap, and he starts petting him, and he is like okay, i think we're good. >> what facebook didn't see was about to shape it's future. >> welcome to the republican presidential debate here here in las vegas. made with ingredients you know and love - like whole nuts, real fruit and a drizzle of dark chocolate. do your taste buds and your body a favor. do the kind thing. bipolar i disorder can make you feel like you have no limits. but mania, such as unusual changes in your mood, activity or energy levels,

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you could put half of trump's supporters into what i call the bask of deplorables. >> we have to beat crooked hillary clinton. >> they just announced 22 million people between twitter and facebook. >> politicians realized the impact of facebook. >> it was integral to politics and it had been for years. >> i'm the guy that got mark to wear a jacket and tie. >> but unnoticed with all that hype -- >> new details about facebook's role in the russian interference

in 2016. a campaign to divide america was well under way. >> okay, guys. >> meet alex stamos. he is a respected figure in security if. >> i survived the last day. today is august 17th, 2018. >> tough to say goodbye to folks, but i'm lad to what comes afterwards. it is the last day he will call himself chief security officer at facebook. >> it's weird to live through history on the inside. naturally i want to question whether or not i did everything they could. >> it was stamos's team that discovered russia was using facebook to influence the election. a turning point in facebook history. >> when i was hired, the job was to keep the platform attack.

keep people's data safe, and now i'm reading buy ciographies on putin, and learning tactics of russian intelligence services. >> the facebook security team discovered suspicious activity involving russian sources. >> why was facebook not transparent when people went to vote? >> it was not seen as our position to get involved publicly in these massive political issues. and in this situation, you know, you don't 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. an astounding upset victory. donald j. trump will become the

45th president of the united states. >> there was concerns the platform was used to spread propaganda and fake news in an effort to influence the election. >> facebook cracking down after reports of fake news stories. >> the idea that fake news on facebook, it's a very small amount of the content, influenced the election in any way i think is a pretty crazy idea. >> i think i was too dismissive. i think i had a negative visceral reaction to the idea that people were kmou tricksome tricked. >> there was a spraet of hy-- r

of news. >> they were trying to take the most radical positions in our society and act as a parody of what other side would believe. their entire goal was to reduce the quality of discourse and to increase ignorant devicivness. the more polarizing their posts were the more likely facebook's a g a gor rlgorithms would share thh more people. >> the center for humane taelg, it's aim was to help tech companies understand the impact of their algorithms.

>> if you're driving on a road and you see a car crash, your mind says i have to look at the car crash, but the way facebook sees it is that is what you want, so it feeds the whole world car crashes over and over again metaphorically. >> the longer people stay on their feeds the more money that facebook makes. >> their business model is how do i keep people on the screen, and how do i make it as easy to influence as possible for the advertiser. if you're not checking what is happening when you have six million advertisers cycling through the system, how do you know if some of the advertisers are iran, russia, china, saudi arab arabia. >> they're internal investigation found that russia's internet agency spent money to advertise. >> after months of inaction and

denies by the company, stamos and his colleagues were allowed to go public with some of their findings. >> we didn't have the problem totally solved by then but i hope it started to change the conversation a little bit. facebook and the rest of the tech companies that believe you should just be honest about the bad things that happen on our platform. >> they were limited in their transparency. there would be more revelations later. they treated the foreign interference like the shift to mobile, and started to increase their security team. by 2018 it would be more than 30,000, but their failure to anticipate and quickly address foreign influence wut the company on thin ice. >> facebook battling a massive data misuse scandal. >> millions of users had their information improperly obtained by a data firm.

>> a data firm, cambridge an lit ka. data up to 80,000 users to be precise, collected before the election that research went on to help the trump campaign better target voters online. >> personality quizes, we have all seen them on facebook. >> they got them through a personality quiz app taken by 300,000 users. >>. >> took data like your music preferences, gender, demographic, marital statics, likes. >> that gave the researcher access to our data and our friends data. this methodology was completely permissible at the time until facebook restricted access in 2015 with privacy settings that allowed developers more access to our information. >> these are ethical debates

that will impact two million people. >> this is another black eye for facebook. >> people your outraged. >> users are asking should i be spending so much time on facebook, maybe i should delete it. >> people are upset and feel like this scandal caused the election to happen the way it did. >> the platform and the possibility -- >> it dated back to when they opened up the platform to developers. >> i think they built something beyond their wilde esest dreams it was so powerful. >> do you think oh, no. this is a platform that you were an early architect of? >> yes, is the answer. i don't think it was something that you could have predicted or thought was a risk. >> we're talking about a level of nation states and nation state actors. these are countries, right?

that have military budgets beyond what any of us can ever imagine. >> social media power houses reeling seeing their worst day in four years. >> it was a turning point for the country. facebook stock price plunged. and the anger was amplified as the days went by and there was silence from the upper ranks until mark finally decided to talk. >> lori sigell got this exclusive interview. >> to me. >> mark what happened? what went wrong? >> when we come back. beauty editors have tried everything... in search of a whiter smile. and year after year, their choice is crest 3d whitestrips. our innovative, flexible design

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cambridge analytica saying where is mark zuckerberg on all of this. >> we were slow to respond, it took us a couple extra days, it was a big deal but we were trying to figure out what happened. >> it was march 2018 and i remember sitting across from mark zuckerberg and it just felt incredibly tense. >> as uncomfortable as it is for

me to do a tv interview, i feel this is an important thing as a discipline for what we're doing, i should be out there and being asked hard questions. wh >> what happened? >> it was a major breech of trust, and i'm really sorry it happened. >> this was different. >> senator john thune and much of washington was watching closely. >> we're contemplating how to proceed in terms of our oversight role and we want to make sure we're holding them accountable. >> everybody wants you to show up, will you testify for congress? >> i'm happy to if it is the right thing to do. >> you're the brand and name of facebook, people want to hear from you? >> we just want to send whoever is best informed to do that. >> we took into consideration

the statements he made, and then started to more aggressively pure sue the idea of him coming in. >> he agreed to testify, and the prep started. inside facebook they built a hock hearing room. >> he worked really hard to prepare and he was ready. >> that was as high stakes as it gets. >> facebook ceo mark zuckerberg hours away from testifying. >> it felt historic, the way it was for the tobacco exec in 1994. they had to bring in extra rows of chairs because there was so much interest. >> we're listening, america is listening, and quite possibly the world is listening, too. >> and wonder, could zuckerberg who historically had a problem with high pressure public

pressure moments. >> it was a mistake and it was my mistake, and i'm sorry. i started it, i run it, and i'm responsible for what happens here. >> his performance in front of congress was poised and he had the right answers and i think he did laps around the people there. >> part of that success had to do with the requests asked by the senators demonstrated a lack about how facebook and tech in general works. >> if i'm e-mails within whatsapp, does that -- >> how do you sustain a business model where users don't pay for your service. >> senator, we run ads. >> it was an embarrassment to the members of congress. it reconfirmed what many of the viewers thought was most of these men and women don't understand even the basic

business model nor any of the data collected. >> was your data included in the data collected and sold to the malicious third parties? >> yes. >> are you willing to change your business model to protect individual privacy? >> congresswoman, we are made and continue to make changes to reduce the -- >> no, are you willing to change your business model in the interest of protecting individual privacy? >> congresswoman i'm not sure what that means. >> i'll follow up with you on it. >> a lot of folks didn't know that some of the data that facebook was collecting through contacts back and forth with friends and others, and the news feeds grow to, was being used for political purposes by a political c political consulting firms. >> an approach that many thought would be regulation. but after two days of testimony, what kind of unclear.

>> we don't want a heavy burden on the kboos that laid the golden egg. >> facebook would try to get in front of impending regulation by giving users more control over their data and investigating tens of thousands of other apps allowed to collect user data but it came down to one fundamental question. >> did making money get in the way of the mission to connect people around the world. >> no, i think it takes a powerful product that changes people's lives and makes it available for free. so if we were to have to charge for facebook a very small fraction of the people that use it would be able to use it. >> they would say how else will we connect the whole world if it is not free? but i would say if the thing

you're connecting the whole world to is not safe, it shouldn't be free. >> unsafe critics say not just because of personal data breeches, but unsafe because of the unchecked data on the platform. >> do we have a responsibility for the content that people share on facebook and i believe the answer to that question is yes. >> it is a fine line as hate speech is ignited, conspiracy terroris terrer this er th-- therorists survive. >> it will be portrayed by someone else -- >> we believe deepfully free expressi expression, we believe that you should be able to express your

voice and your opinion. and we believe deeply in a safe and protected community. that also means a platform to fake news, racists, holocaust deniers, and more. >> genocide and crimes against humanity. >> the u.n. investigation blames facebook and ang sun sui chi. >> by 2018, more than 10,000 muslims were killed. according to a united nation's report the role of social media is significant. facebook has been a useful for example for those seeking to fred hate. >> in places likemyian mar, we're working with local civil

rights groups on the ground leaving to those things that lead to real world arm. >> criticings say the company moved too slowly when they were warned. developing artificial investigation they hope will identify trouble some material, but the answers are not always clear. >> judging hate speech. >> i saw it in this room, employees devoted to content policy. they decide what stays up and what is taken down. a woman accusing a man of assault in a facebook post. the group decided to leave it up. >> we had people posting allegations and other people saying this is harassment and it's not true. >>. >> how do we athrow so people can tell our story, but never cross the line to bullying and

harassment. >>. >> if unanswered here, content decisions go all of the way up. >> i think as little as possible, there will be billions of pieces of content that people post every day and i think getting it right at a system's level is more important. >> with billions of hits lately, these decisions go viral. >> and november 2018, i would be back on campus after a block buster report called into question the company's business tactics. that when we come back. i'm a little bit country. and i'm a little bit rock 'n' roll. i'm a little bit of memphis and nashville. with a little bit of motown in my soul.

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unexpectedly i'm back on campus. after a block buster report raises questions about facebook's business tactics. >> new details the company hired a republican opposition research firm to discredit activist protesters by linking them to liberal financier george soros >> the p.r. firm linked facebook critics to george soros. this is a common tactic used by anti-semitic and alt-right groups. that's why i think people were so shocked when they found out about this. does that strike you as stooping low? >> i wasn't particularly happy about that piece of it. that's certainly a big part of what 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. >> the report also painted a critical picture of how the company handled the revelations of russian influence. and its growing critics. >> i've heard you guys talk a

lot about transparency, but you have these reports coming out that say something otherwise. so how -- i guess i ask it again. how do you ensure that you do win back public trust? >> yeah, i don't think that the right expectation is that there aren't going to be issues. i think the question is how do we address them. >> a question the company is struggling with. while executives have promised to focus on security and transparency -- >> we have more than doubled the number of people we have working in safety and security. >> according to the report, they not only ignored warning signs, but sought to conceal them. set the record straight. facebook sought to downplay the significance of russia in the run up to the election. did they? >> i'm not happy with what the communication strategy was. >> he found himself in the news again. and 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. probably even before the election. obviously there are internal miss dm miscommunications. >> miscommunication that's seemingly came to a head in the board room in the fall of 2017 where stamp os revealed the company didn't yet have a grasp on russian influence. >> that came as a surprise to cheryl. 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 cheryl's control. >> whose control was it in? >> facebook wasn't measuring the bigger impact and thinking about the ways people could twist it and be misused. in the end that was mark's responsibility. >> what was your feeling kind of walking away from facebook? >> the truth is there is a bit of a "game of thrones" culture among the executives. one of the problems about having a tight-knit set of people making all these decisions, if you keep the same people in the

same places, it's difficult to admit you were wrong, right. >> the company is powerful. and after spending time behind facebook's walls, there was another theme that emerged. folks who had something to say, but were afraid to say it. this former employee asked us so protect their identity. >> speaking out at the company is not welcome. you might get blacklisted and you're not going to get hired. >> icon kellronically a place t connected billions -- >> generally they handle that as well. in a public setting he politely argues against it in. in a public setting he's going to aggressively going to challenge the source, challenge --

>> facebook is in transition. many executives have left over rumored disputes about the company's direction, including the founders of instagram and what's app. amidst all the controversy, there's been speculation. should zuckerberg, who is c.e.o., chairman and the majority shareholder in facebook, step aside? >> that's not the plan. >> that's not the plan. would anything change that? >> i mean, eventually over time. i'm not going to be doing this forever. >> many of the employees you've met in the show have left. >> hopefully it will give you kind of a pretty good understanding -- >> including alex stamos who is 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 be reactive. having a real diverse set of people work on these -- work in tech and silicon valley is going to be critical for that. >> randy zuckerberg focuses on

getting more women in the tech sector. >> how do you question the impact of his creation and whether it's good for humanity? >> he has always just been an incredible trail blazer of pushing the boundaries, you know, of what he sees, where he sees the world should go. you know, he has pushed a lot of us to think of the world in a bigger, more connected weighed than we ever thought it would be. so, you know, for better or worse, mark is not the kind of person who is swayed by what you or i or anyone thinks of him. and because of that, i think we're going to get a lot more amazing things out of him in the years to come. >> at 34, zuckerberg is one of the most powerful people in the world. he's pledged his fortune to charity and there is 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 complicated questions, a ripple effect of zuckerberg's mission. is what's good for business good for society? and what is the cost of connecting the world? >> right now the tech industry has been telling themselves this narrative that if you connect people, platform for free speech is automatically good. i think the deeper upgrade we have to make is a philosophical upgrade, which is 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 of the relationships and all of the interactions between all those relationships. and so, in a way, it's as messy and human as we all are.

>> it is hard to say what any individual can do in the face of these massive kind of historical forces that we're at the intersection of, right? what happens when you give voice to billions of people for the first time in history? >> do you think on the right side -- we'll be on the right side of history when 2003 look back at this period? >> i think so. i think when we connect people and share more ideas isn't going to end up being a positive thing. >> although we're at a moment where a lot of people are watching facebook and wondering, can you do all those things. >> the principles of how do you balance giving people a voice with keep l peoping people safe do you protect people's privacy and use information the way people are comfortable with, while at the same time being able to build a system that can stop bad guys from doing things and can provide a service for free for people around the

world. these are big historical questions. they're not simple things that have, you know, one sentence answers. and over time, i really believe that 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.

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