The shares in Facebook have dropped by more than two percent as the markets opened in the US on Tuesday afternoon. It was prompted by the sudden resignations of the two founders of Instagram.
On Tuesday morning, the share price of Facebook dropped by as much as 3.2 percent in pre-market trading, prior to opening 2.4 percent down to a total market value loss that amounted to $11.6 billion (£8.8 billion).
Six years on from the $1 billion acquisition deal of Facebook of the photo-sharing app, Mark Krieger and Kevin Systrom announced in a blog post that was posted on Tuesday morning that they would be stepping away from Instagram in order to “explore our curiosity and creativity again.”
The circumstances that surround the departure of Krieger and Systrom continue to be under scrutiny, as some sources informed Bloomberg News that the two had become disturbed with the increasing involvement of Mark Zuckerberg, the CEO and founder of Facebook in the business.
The revenues at Instagram have been the fastest-growing source of income of Facebook this year after the own user numbers of Facebook started to stagnate in the wake of the Cambridge Analytica scandal last April.
During its last earnings release last July, Facebook revealed that its user numbers had experienced very little to no growth in significant areas which included North America. It prompted its market value to take an overnight $120 billion hit which is considered as the largest one-day crash in the stock market history of the United States.
The co-founders of Whatsapp, a messaging service that is another one of the popular acquisitions of Facebook, also stepped down from the company earlier this year.
In a statement regarding the resignation of Krieger and Systrom that was released earlier today, Zuckerberg stated: “I’ve learned a lot working with them for the past six years and have really enjoyed it. I’m looking forward to seeing what they build next.”