Facebook is Changing its Name to Meta as it Focuses on the Virtual World

“From now on, we’re going to be the metaverse first. Not Facebook first,” Zuckerberg said at Connect, the company’s annual event focused on virtual and augmented reality. “Facebook is one of the most-used products in the world. But increasingly, it doesn’t encompass everything that we do. Right now, our brand is so tightly linked to one product that it can’t possibly represent everything we are doing.”

The move comes as Facebook is mired in controversy over allegations that it has privately and meticulously tracked real-world harms exacerbated by its platforms, ignored warnings from its employees about the risks of their design decisions and exposed vulnerable communities around the world to a cocktail of dangerous content. After a whistleblower this month turned over tens of thousands of internal company documents to Congress and the U.S. Securities and Exchange Commission, lawmakers and critics have called for urgent action to rein in the tech giant.

“Don’t forget that when Phillip Morris changed [its] name to Altria it was still selling cigarettes that caused cancer,” tweeted Democratic lawyer Marc Elias.

Zuckerberg said the rebrand would heed the “lessons” of the past, noting in a blog post that privacy and safety would be built into the new generation of products “from Day One” — a clear nod to Facebook’s record of eroding trust. In his keynote address, he also nodded to Facebook’s problems, saying, “The last few years have been humbling for me and my company in a lot of ways.”

One of the major allegations of the Facebook Papers is that the company built and deployed social media technology without having a grasp of its harmful effects. Critics fear the same problems would plague the metaverse — only the stakes could be higher, as Zuckerberg pitched that people would essentially live part of their lives in his virtual world.

He sought to offset potential criticism by saying in his presentation that the next generation of Internet services would be built with greater “humility and openness,” and take the “lessons” of the past into account. But critics and some former insiders questioned that commitment.

“I was thinking during the keynote, who will be the cops in the metaverse?” said Katie Harbath, founder and CEO of consultancy Anchor Change and former Facebook public policy director. “The first few years may seem great because not that many people are on the service, but the more that come on, the more bad actors. And then the company plays catch-up.”

Harbath noted that roughly every five years, the company has announced a big directional change amid a bad press cycle. In 2012, the company pivoted to mobile while getting attacked for a poor performance during its public offering. In 2017, it announced a shift to focus on communities and groups — bringing the world together — after the controversies over Russian disinformation during the previous year’s presidential election.

But virtually all of Facebook’s revenue — $29 billion in the third quarter — comes from online advertising produced by the core blue Facebook app, meaning that any transition to virtual reality focused on the sale of hardware would take enormous investment and many years.

“While the name change indicates a larger vision, that transformation is not yet a reality and will be a years-long investment,” eMarketer analyst Audrey Schomer said in an email.

In a letter on the company’s website posted shortly after the keynote, Zuckerberg said that the future would be “an embodied internet where you’re in the experience, not just looking at it. We call this the metaverse, and it will touch every product we build.”

Zuckerberg began talking about how the company would transition to a new identity this summer. He subsequently announced a smart-glasses partnership with Ray-Ban and a plan to use its virtual reality headsets for work-related videoconferencing. He promoted a longtime friend who heads the hardware division, Andrew Bosworth, to become the company’s new chief technology officer.

The term “metaverse” comes from science fiction and has been popularized by venture capitalists in recent years as a way to talk about interconnected services.

Facebook also isn’t the first Silicon Valley company to rebrand itself. Google changed its parent company’s name to Alphabet in 2015 in an attempt to unify a corporate behemoth that encompassed not only search-and-display advertising but also driverless cars and a life-sciences division. Snapchat changed its name to Snap Inc. in an attempt to rebrand itself as a camera company.

Zuckerberg said that the name “meta” was inspired by his love of the classics, and that it comes from the Greek word “beyond.”

“For me, it symbolizes that there is always more to build, and there is always a next chapter to the story.”

Courtesy: Washington Post