Stock in the New York Times Company rose a whopping 8.4% on Friday, following an announcement by Facebook that it would give priority in its News Feed to trusted news sources. Some other news and publishing organizations, including Fox News parent company News Corp, made smaller gains.
Facebook’s announcement indicated that it will factor in community ratings of trustworthiness into the algorithms that govern users’ News Feeds.
That stands to benefit the most trusted news organizations — though the impact on the Times‘ stock seems somewhat disproportionate. In a 2017 survey from the Reynolds Journalism Institute, the Times ranked in the middle of the pack on public trust, behind outlets including the Wall Street Journal, PBS, and Time, published by Fortune parent company Time, Inc.
News Corp stock rose just 1.23% on the news. Its Fox News channel was not highly rated in the Reynolds survey, though the Wall Street Journal, also owned by News Corp, was.
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Facebook’s announcement was greeted with some cautious optimism, but just as many lingering questions. Skeptics highlighted that, by relying on users to rank sources, Facebook is once again abdicating …read more
Source:: Fortune.com – Tech