on the crypto
As expected, Mark Zuckerberg announced that Facebook Inc. (Facebook shares - ticker FB) is changing its name to Meta, a move it said reflects the emphasis on a new computing platform called the metaverse. Critics say it aims to divert attention from Facebook's increasingly toxic reputation. And while Zuckerberg, who founded the company, is betting that turning his attention to virtual reality will ensure a brighter future, those technologies are far from being widely used.
But what exactly is the metaverse? Tae Kim gives us an explanation: "Think of a futuristic version of an always-on multiplayer video game where you can play, socialize or even run a profitable business in a realistic computer-generated environment."
Here's what Bloomberg Opinion columnists said prior to the announcement
The risk of rebranding: There is no guarantee that the end result will not be a car accident. Just ask Gap Inc., Tropicana Products Inc. and the UK's Royal Mail service. Gap and Tropicana were well-loved brands who opted for bold, "clean" rebrands that were immediately panned by the public before being swapped out again. In 2001, Royal Mail became “Consignia” at a cost of $ 2,8 million, abandoning 500 years of history, and then it took 16 months to reverse course. It is destined to initially unleash a storm of indignation and mockery. But Zuckerberg and the rest of the company's senior team will expect this as a rite of passage. If people are reminded of the metaverse every time the company is mentioned, it would be a step towards owning the space and perhaps even forgetting the past.
The reward of the metaverse
If the metaverse game is successful, there may be no need to respond to challenges such as filtering out fake news and hate speech, limiting data collection, making ad targeting more transparent. New challenges will replace them, and before the media and regulators get their bearings, Mark Zuckerberg may be able to enjoy an even more profitable ride than in the age of social media.
The foundation
Facebook has a different purpose today than it did a decade ago, and challengers like Snapchat and TikTok are not well positioned to threaten the social media platform's dominance with older users. To do this, they would likely have to change their products significantly to more closely resemble Facebook, perhaps shutting down their main youth base.
The solution to Facebook's low reputation problem
Putting aside the prospects for financial success with this great new platform, which don't look good, Facebook's hyperfocus on the metaverse right now reflects the poor judgment of its management and Mark Zuckerberg in particular. Evidence is growing that Facebook pushes older people towards conspiracy theories and teens towards physical problems. Zuckerberg should instead focus on her mother's execution of all cleaning jobs: hiring thousands of extra employees, especially content moderators, to help target malicious content on her site before building a new one that will fix the same old problems. .
