Meta Platforms, Inc., better known as simply Meta, is the new name for the parent organization of Facebook, Instagram, and WhatsApp. It's one of the most valuable companies in the world, with just shy of $166 billion in assets at the end of 2021.
Or, rather, costly: according to a new report in New York Mag, the company has lost a whopping $500 billion dollars — that's a five, followed by eleven zeroes — since the 2021 rebrand. The company is rich, but that represents more than three times its total reported assets.
It isn't unrelated, but things are a tad more complex than just changing the name of the company. Along with the name change came a slew of other changes aimed at tracking user data and delivering targeted advertisements to its users. It's all part of Facebook founder Mark Zuckerberg's vision to pivot into immersive virtual reality.
While targeted ads are big moneymakers for Silicon Valley companies, there's been a consumer backlash against this level of invasive tracking. Other companies, including Apple and Google, allow their users various privacy controls, but Meta has been slow to institute these changes.
While the platform still has nearly three billion users, there's been a noticeable trend of users moving away from Facebook and towards non-Meta social media platforms like TikTok.
Despite the sobering news, Mark Zuckerberg has shown no sign that he intends to change course. He's still worth nearly $72 billion as of the time of publication, so he has plenty of funds available to move forward with his plans.
In short, if a company is incredibly rich, it's better able to withstand massive losses. But shareholders have noticed the trend. Meta was once the sixth-largest company in the world, but is now no longer in the top 10.
It's important to recognize that we're less than half a year into the rebranding, and by extension, Mark Zuckerberg's ambitious plan. While the losses hurt, it seems unlikely that Meta would change direction after just five months. After all, they have enough money to weather this storm.
Are we headed for a dystopian future where we have no privacy and plug ourselves into VR headsets every day? It might seem unlikely, but people disregarded the internet itself back in the '90s. We won't know for sure until we get there.
Even though a small percentage of people control the majority of wealth in the world, $500 billion is a lot of money, even to the richest of corporations. It'll be fascinating to see what becomes of Meta, and by extension, Facebook, WhatsApp and Instagram.
Let us know what you think of this news in the comments!
h/t: New York Magazine
We want to hear from YOU so we can serve you better. Complete this quick survey and you will be entered to win a grand prize of $2,000, or a chance to win one of 10 Diply prize-packs!
