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The Kenya Forum | Facebook Lost Sh11 Billion During Global Downtime - The Kenya Forum

October 5, 2021

Summary

Facebook Inc lost an average of Sh24.5 million for every minute of the total six hours of service downtime that hit its key applications on Monday, according to Fortune Business magazine.

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Facebook Inc lost an average of Sh24.5 million for every minute of the total six hours of service downtime that hit its key applications on Monday, according to Fortune Business magazine.

“As of 7:00 p.m. ET, when the company announced it was coming back online, Facebook saw estimated total lost revenues of roughly $99.75 million,Fortune estimates.

The six-hour global outage affected Facebook, Instagram, WhatsApp, Messenger and Oculus.

According to Fortune Magazine, the tech giant lost a total of Sh11 billion in revenues in the six hours of downtime.

The figure is based on Facebook’s second-quarter earnings, which saw revenue of $29.08 billion over a 91-day period. That works out an average of $319.6 million per day or $13.3 million per hour. (The figure does not account for peak traffic periods or days of the week.)” Fortune.

The outage began at about 6.42 pm East Africa Time on Monday and went on till 1.56 am on Tuesday.

Facebook Inc also reportedly lost out in the stock market after its stocks closed down about 4.9 percent while also knocking off over Sh700 billion from the net worth of founder and chief executive Mark Zuckerberg.

The financial loss ocassioned by the global downtime follows an earlier dive in stocks  in the company’s stock after a former employee accused Facebook of “routinely choosing ‘profit over safety.

Tech Savvy users and Data Security experts have been concerned about the safety of users’ data especially if the downtime was occasioned by a security breach.

Facebook however in a statement issued on Tuesday said that no user data was compromised during service restoration, and confirmed that the cause of the outage was a configuration change to the backbone routers that coordinate network traffic between the company’s data centres.

The last time Facebook experienced a similar global outage was in 2019 and lasted for more than 14 hours.

 

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