Facebook senior exec David Marcus to lead blockchain effort

Anita Balakrishnan | CNBC

Facebook "instituted its biggest executive shakeup in its 15-year history this week," Recode reported on Tuesday, a reorganization that will include a new blockchain effort and aims to address privacy concerns.

Facebook confirmed the details of the reorganization.

The experimental blockchain group will be led by David Marcus, the executive most recently in charge of Facebook's Messenger group. Marcus sits on the board of directors of Coinbase, an exchange for cryptocurrency (which uses the blockchain as its underlying technology), and joined Facebook from PayPal in 2014.

Time for a new challenge! After four amazing years leading Messenger, I'm going to setup a small group to explore how to best leverage Blockchain for Facebook. I will miss my fierce Messenger team, but I'm excited about the journey ahead. My full note: https://t.co/nBKAr7vyj9 — David Marcus (@davidmarcus) May 8, 2018

Facebook will now operate under three divisions: a "family of apps" group (including Facebook, Instagram, WhatsApp and Messenger), a new platforms division (including a blockchain technology team, augmented and virtual reality, enterprise technology and artificial intelligence) and a "central product services" team, which covers shared resources like ads, data analytics and security.

The report comes as Facebook has faced fallout over data privacy and "fake news," amid revelations of data sales to outside firms like Cambridge Analytica, and evidence of Russian election interference. Meanwhile, Facebook has tried to keep its ad revenue growing through newer, younger platforms like WhatsApp and Instagram.

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WhatsApp co-founder Jan Koum announced last month he was leaving the company. As part of this week's reorganization, most Facebook apps are getting new leaders, save Instagram, which will continue to be run by Instagram CEO Kevin Systrom.

Facebook separately announced on Tuesday that it added Jeff Zients, the CEO of Cranemere, to the board. Zients will join the audit committee, Facebook said, as will another recently added board member, Kenneth Chenault. Venture capitalist Marc Andreessen will also be on the committee but will no longer be on the compensation and governance committee.

—CNBC's Michelle Castillo contributed to this report.

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