Facebook becomes Meta: Rise of the Metaverse?

Facebook renames itself to Meta Platforms – or short Meta. Of course, half the world is talking about this since the company's products are used by 3.5 billion people. But what does the renaming mean?

Facebook renames itself to Meta Platforms – or short Meta. Of course, half the world is talking about this since the company’s products are used by 3.5 billion people. But what does the renaming mean?

New strategy and image

It’s no secret that Facebook was a highly controversial company. Companies shaken by scandals often practice the trick of simply giving themselves a new name. But that is only one side of the coin.

The truth is also that, now Meta Platforms, is a highly profitable company. You can also feel it in your circle of acquaintances, the company is not popular, but you often hear phrases like: “Best place for small town gossip” or “The marketplace works well for me”.

Numbers don’t lie, and what else can you say about $100 billion in annual revenue with $53 billion in profit left over?

One can only take the company seriously and therefore look closely at what the name change also means – namely a new strategy.

Meta and the Metaverse

Meta needed a new strategy. Actually, the original product Facebook alone should be unassailable. At least in theory. It is protected solely by its sheer size and the associated network effect.

Nevertheless, in 2012 Facebook was forced to buy Instagram, then still with 12 employees, for $1 billion and two years later WhatsApp for $19B.

This shows how vulnerable even a giant like Meta is. Meanwhile, TikTok is also a major competitor. Meta’s products are constantly at risk of disruption, which can come from even the smallest startups.

So, Meta is now taking the plunge and wants to be behind the wheel itself when it comes to the next big thing – the Metaverse. And that’s nothing less than an all-in bet on the next computing platform.

Zuckerberg’s Metaverse Vision

The name Meta really doesn’t fall from the sky and many have speculated on it in advance. Facebook has voiced the vision of the metaverse several times in the past. Oculus, which is since 2014 under Meta’s umbrella, also plays an important role in this context with its virtual reality equipment.

The vision of Zuckerberg was published together with the renaming on October 28, 2021.

A bit disparagingly, you could say he wants to build a better and more modern SecondLife. However, the enterprise world is definitely in focus.

In the past, this might have been shrugged off. But since the global pandemic and the associated home office, this could well be an exciting development. Applications like GatherTown, which are becoming increasingly popular, even in conservative business environments show the trend.

Today, Facebook is not only about social interaction, but also trading via marketplaces. Furthermore, there is a complete gaming ecosystem.

These points would transfer excellently into the metaverse, creating completely new experiences.

For example, virtual reality shopping. Combining the benefits of e-commerce with the classic shopping experience. Alibaba calls this New Retail, for example.

The developments should be exciting to follow, and I am very interested in your opinion. Let me know here or on Twitter.


Image: Pixabay, Pixabay License

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