Does Facebook feed political polarization? Not as much as you might think, according to a study by the social networking company published in the peer-reviewed journal Science yesterday.
This is no small question. The increasing political polarization of the American public, which has been well proven by my former colleagues at the Pew Research Center, is a one cause behind the dysfunction of American government. And Facebook, which has become the de facto newspaper for as much as a third of the nation, is often blamed for feeding its users posts that align with their political beliefs and filtering out those that don’t. The study of 10 million politically active Facebook users found this so-called “filter bubble” effect is not as large as some think. Moreover, the study claimed to show that personal choice is more important than the Facebook algorithm in causing whatever bubble does exists.
Critics were quick to push back, saying Facebook’s distinction between the effects of individual choice and the company’s algorithm was self-serving and spurious – since one feeds the other. The fundamental question remains whether your “friends” make a better news filter than ink-stained editors. But on that, I have a bias.
And speaking of politics, the story of the day is the Conservative’s surprise victory in the U.K. – a humiliating defeat for Labour, Liberal Democrats, and most pollsters. Our friend Jon Cohen from SurveyMonkey, however, emailed last night to say his poll was the one that got it right.
Dave Goldberg would have been proud.
| Alan Murray | |
| @alansmurray | |
| alan.murray@fortune.com |
Top News
• U.K.'s Conservatives storm to victory
Prime Minister David Cameron’s Conservative party won a surprise victory in the U.K.’s general election, defying opinion polls that had predicted the poll would end in a deadlock. Financial markets reacted enthusiastically to the news–the pound rose 1.5% against the dollar to 10-week high, while the broad FTSE 250 index rose 2.7% to a new all-time high. Fortune
• Syngenta rejects Monsanto offer
Syngenta has spurned a $45 billion takeover bid from Monsanto, with the world's largest maker of agrochemicals claiming the offer undervalued the company. The cash-and-stock bid came in at 35% above Syngenta's closing price on Thursday. The U.S. maker of genetically-modified seeds and Round-Up weedkiller appeared to time its approach with a lull in Syngenta’s performance amid currency moves and lower crop prices. “While Syngenta’s valuation is currently affected by short-term currency and commodity price movements, the business outlook is strong," said Chairman Michel Demare. Bloomberg
• Fitbit files for $100 million IPO
Fitbit, a maker of fitness tracking devices that is being challenged by Apple’s new watch product, has filed plans to go public. Fitbit reports nearly $132 million in net income on $745 million in revenue for 2014. This is a massive flip from 2013, when the company had a $52 million net loss on $271 million in revenue. The company also reported selling 10.9 million devices last year, which means that it accounted for more than half of last year’s fitness band market. Fortune
• Will jobs report show economy back on track?
Cold weather, snow and labor disruptions at ports hindered growth but as WSJ's Fed watcher Jon Hilsenrath notes, "the sun shined in April and Fed officials want to see confirmation that gave some heat back to the economy." The April jobs report is projected to show accelerated hiring and a slightly lower unemployment rate, as analysts are hopeful for a rebound. If those expectations are met, it could put Fed officials on a path toward raising short-term interest rates later this year. WSJ (subscription required)
• Uber bids for Google Maps rival
Ride-sharing startup has submitted a bid for Here for as much as $3 billion, The New York Times reported, citing people familiar with the matter, which is owned by Finnish telecom giant Nokia. A potential deal would make sense on a few fronts: digital maps have been weaved into the heart of businesses like Uber and Airbnb. And while Google Maps is about 10 times larger than Here in terms of user count, Nokia's business dominates automobile mapping. New York Times (subscription required)
Around the Water Cooler
• T. Boone Pickens likes oil, Jeb Bush
T. Boone Pickens, the oil tycoon, believes that the next six months will be better for frackers and oil companies in general than the last six months have been. He says the price of oil will rebound rapidly soon, reaching $75 a barrel by the end of the year. Pickens, who spoke at an annual hedge fund conference, also announced he was backing former Gov. Jeb Bush of Florida for president in 2016, and that he had already donated $100,000 to the Bush campaign. He also called Hillary Rodham Clinton a “loser,” which got cheers from the crowd made up mostly of Wall Street types. Fortune
• CEO turnover: Will two alphas be next?
Salesforce CEO Marc Benioff's future has been in question ever since reports of a possible acquisition of his company by Microsoft or perhaps another firm. But there is also speculation around EMC Chief Joe Tucci’s future is no less interesting. Tucci, who has announced and renounced retirement plans a couple of times, and EMC have formed a standstill agreement with an activist investment firm that won two board seats earlier this year. But no one expects that will last forever. Fortune
• Regulatory clashes: A startup badge of honor
If your startup is pissing off regulators, you are likely doing something right. That's the takeaway from a profile piece on human resources software startup Zenefits, which in just two years has faced opposition from insurance industry regulators in a handful of states. The issue is the company gives away its software for free, unlike competitors, and instead collects a fee from insurance companies when a customer buys insurance through Zenefits. That's enraged traditional rivals, and regulators in some states have heeded their claims Zenefits violates state rebate laws. Wired
Fortune's 5 things to know today
U.K. election and jobs data — 5 things to know today. Today's story can be found here.
