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Facebook shares slip after News Feed overhaul


(Reuters) - of Inc fell 4 percent on Friday after announced changes to the platform's centrepiece Feed that he said would hit user engagement in the near term.

said on Thursday the company would change the filter for the Feed to prioritize what friends and family share, while reducing the amount of from publishers and brands.

If the premarket declines in hold, stands to lose nearly $23 billion from its market capitalization on Friday as a result of the move.

said its analysis of Nielsen's digital consumption rates showed that usage was already falling prior to Zuckerberg's announcement, although from very high levels.

"We can speculate that the concerns reflected in Zuckerberg's post may very well have been driving these declines," Pivotal's wrote in a note.

The company has been criticised for algorithms that may have prioritized misleading and misinformation in people's feeds, influencing the 2016 American as well as political discourse in many countries.

While, Facebook's advertising would be unaffected by the changes, the shift was likely to mean that the time people spend on and some measures of engagement would go down in the short term, said.

It may also have an impact on major suppliers of and other content.

John Ridding, the of the Financial Times, warned on Friday that the domination of by search and platforms was putting pressure on

"The FT welcomes moves to recognise and support trusted and reliable and analysis. But a to the challenges of the new information ecosystem requires further measures," he said.

"In particular, a viable subscription model on platforms that enables publishers to build a direct relationship with readers and to manage the terms of access to their content."

(Reporting by in Bengaluru; editing by Patrick Graham)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 19:06 IST