Facebook’s plan to change its company name comes at a peculiar time. The nearly $1 trillion company that owns Instagram and WhatsApp faces its most significant scandals in years. The question that arises is the name change is meant to be a distraction from its more substantial problems or a sign of more company changes to come. There is a lot the public doesn’t know, including what exactly Facebook’s new corporate name will be.
As per speculations, the name will connect to the company’s focus on the metaverse, a developing digital platform enhanced by an augmented and virtual reality where people interact through digital avatars. The Facebook spokesperson said the company would not comment on rumors or speculation.
But one thing that is clear from this rebrand is that despite the massive challenges the company is facing, it isn’t slowing down. The company still is putting its efforts into expanding its domination and world-building. It is likely that a rebrand would position the blue Facebook app as one of many products under the parent company. The company already has more than 10,000 employees building consumer hardware like AR glasses; the CEO believes that they will effectively transition from people seeing us as primarily a social media company to being a metaverse company over the next several years.
In response to the whistleblower’s revelations, rather than announcing serious reforms in response, the company’s CEO has made no apologies. Instead, Facebook has dismissed the whistleblower’s complaints and evidence. The company is planning to turn the science-fiction concept of a metaverse into a business reality.
For the company, it is not the idea. The company’s CEO sees the metaverse as the next phase of significant technological innovation akin to the invention of the internet or mobile phones. According to the CEO, the company will be a metaverse company, not a social media company, in the next five years. The reported name change shows that the CEO will reorient the entire Facebook brand around it.
Some critics have said that a new name serves as a convenient media distraction from the deeper issues at hand. Changing the corporate name for a company like Facebook requires long-term planning and strategizing. The name change was not planned overnight. It is possible that the recent events could have sped up a decision already in the works.
And so far, the name change is only prompting more scrutiny. As the world waits to learn more about Facebook’s rebrand, a pivotal detail to watch for is whether there will be actual structural change to the company. The question that arises is if any organizational or leadership change comes with this rebrand.
The company is determined to push its business goals. The company is still financially successful despite all its public scandals. Each quarter the company ranks in tens of billions in revenue. Shortly after the whistleblower went public, the company’s share took a notable 5% dip and an unusual network outage. But the price is already bouncing back. Analysts are expecting another strong earning. The company doesn’t seem to fix messy reality today but build out a new one for tomorrow.