5 Reasons Why Facebook Decided To Be Meta?

A few months ago, Facebook, which owns platforms such as Instagram and WhatsApp, made a fundamental decision to rename it Meta Platforms

A few months ago, Facebook, which owns platforms such as Instagram and WhatsApp, made a fundamental decision to rename it Meta Platforms. The name change was a surprise to regular users of the app, but Facebook founder Mark Zuckerberg said the name change was to show that the company was bifurcated and linked to multiple products. He added that Meta better represents what the company is aiming for. On the other flip, there are several Metaverse platforms such as XANA Metaverse, already providing opportunities for users to explore a digital world that could be the next generation of the internet.

What Is The CEO's Vision Behind Rebranding?

On October 28th, when the brand change was announced, a founding letter was sent centered around the idea of ​​wanting to be known for more than just Facebook services. 

"Currently, our brand is so tied to our products that we will not be able to represent everything of the present in the future. I hope we will soon be recognized as a Metaverse company. In his founding letter, we want to lock our work and identity to what we have built up, "Zuckerberg said.He further added, "We have just announced a radical change in the company.Currently, we are viewing and reporting our business as two different segments, one for the app family and one for future platforms for work. Our work on the Metaverse is not just one of those segments. The Metaverse includes both social experience and future technology."

That means that the company will keep Facebook out of the limelight over time, and the letter also argues that people do not need a Facebook account to access other services. Zuckerberg also said that meta means "beyond what is possible today" concerning the company's work.

Why Did Facebook Rebrand Its Name To Meta? 

Kyla Lam, IDC's ARVR / wearable research analyst, said that the letter made sense but was also a response to the ongoing allegations against whistleblower Frances Haugen's company. "I think there are several reasons why Facebook changed its name to Meta. First, in the face of numerous privacy and security allegations, whistleblower Francis Hogen made a statement on Facebook. Nevertheless, Facebook uses the new parent's name as a public diversion to talk about rebranding."

"Second, the recent fall in stock prices has helped soothe investors. Having a parent company streamlines operations and includes Facebook Reality, app families such as Facebook and Instagram, and AR and VR-related business segments. A unique evaluation of Labs suggests that it may increase transparency and clarity. Facebook's desire to increase reach and advertising revenue." Lam continues.While more than 97% of Facebook's revenue comes from advertising and Facebook's credibility is waning, this Metaverse project effort demonstrates its ability to add value to advertising.

Why Does Facebook Do This?  

This special effort provides at least a temporary distraction from Facebook's endless bad news. For years, social media giants have been accused of promoting the spread of false information and adhering to opaque policies regarding user data. Things only got worse in the last few months after whistleblowers leaked many of the company's secrets. 

At the same time, social platforms are losing the support of young users. Instead, many are flocking to the Chinese video app TikTok. Facebook makes money by selling targeted ads to marketers. However, as the number of users decreases, the advertising revenue increases.

Final Verdict

Facebook may want to live longer than the original generation of social media companies by changing its position as a new futuristic company. Proponents of the Metaverse, including Facebook, claim that no company owns or operates the Metaverse. But with a hard push, Facebook can try to establish itself as a leader in this area. Interactive online games and Metaverse platforms like Roblox and Minecraft, and XANA Metaverse have been around as the predecessor of the Metaverse. He also plans to split his Facebook Reality Labs (FRL) business into another entity from the fourth quarter of this year.

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