Facebook, one of the world’s largest and most popular social media platforms, made headlines in October 2021 when it announced that it would change its corporate name to Meta. This major rebranding initiative has left many users wondering – why did Facebook change its name, and what does this mean for the future of the social media giant?
What was Facebook’s old name?
From its launch in 2004 up until October 28, 2021, the company was known simply as Facebook. The name Facebook was chosen by founder Mark Zuckerberg as a reference to the physical “face books” that some American universities used to distribute photos of incoming students to help students get to know each other.
For 17 years, Facebook operated under this original name, growing from a site for college students to connect into a sprawling social media empire with nearly 3 billion monthly active users worldwide. The Facebook name became synonymous with social networking and dominated the industry along with other platforms like Instagram, WhatsApp, Messenger and Oculus – all of which are owned by Facebook.
When did Facebook change to Meta?
On October 28, 2021, Facebook founder and CEO Mark Zuckerberg announced that Facebook, Inc. would be changing its corporate name to Meta. The rebranding took effect that same day.
The announcement was made at Facebook’s annual Connect conference, where Zuckerberg laid out his vision of the “metaverse” as the next stage in social connection and technology. As part of its metaverse focus, the company rebranded itself from a social media company (Facebook) to a metaverse company (Meta).
Why did Facebook change its name to Meta?
According to Zuckerberg and other Facebook executives, there were several key reasons for the change to Meta:
- To reflect the company’s focus on building the metaverse. Zuckerberg sees the metaverse – a virtual environment where people interact virtually using digital avatars – as the next major platform after mobile internet.
- To encompass Facebook’s other products and technologies besides just the Facebook social media platform. This includes Instagram, Messenger, WhatsApp, Oculus virtual reality, and more.
- To separate the parent company brand from the Facebook app brand. Executives felt the Facebook name was too tightly linked to the social media platform specifically.
- To improve the company’s reputation following recent scandals and controversies. The Facebook brand had suffered PR damage in recent years due to issues like data privacy, election interference, and more.
What is the metaverse?
The “metaverse” refers to a vision of an immersive virtual environment where people can interact digitally using avatars, play virtual games, work collaboratively, and more. While metaverse technology is still in development, some key aspects include:
- Persistent virtual worlds: The metaverse isn’t limited to a single virtual scenario like a game or meeting. It’s a persistent virtual world.
- Shared virtual spaces: Users from all over the world can occupy and interact in the same virtual space, in real-time.
- Virtual embodiment: Users create customizable avatars to represent themselves in the metaverse.
- Immersive experiences: Interactive virtual worlds, 3D environments, and augmented or virtual reality help create an immersive metaverse experience.
- Interoperability: Content, avatars, apps, payments and experiences carry over between metaverse environments.
Facebook sees the metaverse as the successor to the mobile internet. The company plans to develop social, entertainment, work, and creative virtual spaces where people can gather as they do today on social media.
What does Meta own?
As a company, Meta owns several major platforms, technologies, and businesses focused on its vision of the metaverse, including:
- Facebook – The Facebook social media platform and app, with nearly 3 billion monthly active users globally.
- Instagram – The Instagram photo sharing app and social network, with over 1 billion monthly active users.
- Messenger – Facebook’s messaging app and platform, with over 1 billion monthly active users.
- WhatsApp– The popular encrypted messaging app used by over 2 billion people monthly.
- Oculus – Oculus virtual reality headsets and platforms, acquired by Facebook in 2014.
- Portal – Facebook’s line of video calling devices for homes.
- Spark AR – Facebook’s augmented reality developer platform and creation tools.
- Workplace – A social platform and chat app for enterprise clients and employees.
Collectively, Meta’s family of apps and technologies reach over 3.5 billion people every month, over a third of the world’s population. The company is valued at over $900 billion as of October 2021.
How has the stock market responded?
Facebook officially changed its stock ticker symbol from FB to MVRS on December 1, 2021 to reflect the renaming. Meta’s share price has remained relatively steady following the rebranding:
| Date | Closing Price |
|---|---|
| October 28 (rebranding announcement) | $310.11 |
| November 1 | $331.26 |
| November 15 | $340.89 |
| December 1 (ticker change to MVRS) | $333.78 |
While Meta’s stock dipped in September 2021 prior to the announcement, primarily due to recent controversies, shares quickly rebounded following the rebranding. Investors appear to be optimistic about Meta’s long-term metaverse strategy.
How have Facebook users responded?
The response from Facebook’s user base to the rebranding has been mixed:
- Many users have mocked the Meta name change on social media platforms like Twitter.
- Some argue it is an attempt to distract from recent scandals and controversies.
- Others think the metaverse focus means Facebook is out of touch with real social media issues.
- However, there is also excitement around Meta’s metaverse and VR aspirations from tech enthusiasts.
- Research shows a majority of users support the shift to help Facebook innovate and move forward.
- Most users expect to continue using Facebook, Instagram and Meta’s other platforms as they did before.
What does this mean for the future of Facebook and Meta?
The rebranding signals some major strategic shifts for the social media giant:
- Meta will focus heavily on metaverse development in coming years.
- The company will expand investments in VR, AR, neural interfaces and more.
- Facebook the app may reduce prominence as Meta pursues a metaverse ecosystem.
- Acquisitions and partnerships will aim to bolster Meta’s metaverse play.
- Meta will target a younger demographic of users comfortable with virtual worlds.
- The company faces significant risks in pursuing an unproven metaverse concept.
Conclusion
Facebook’s rebranding to Meta signals its ambitions to help drive the next major evolution of social interaction online. By moving beyond just social media to help build an immersive virtual metaverse, Mark Zuckerberg and Meta aim to define the next era of technology and online connections. However, significant obstacles remain around developing a functioning, widely adopted metaverse. With its vast resources and massive user base, Meta believes it is well positioned to spearhead this effort – although only time will tell if its metaverse gambit succeeds.