Facebook Inc (FB.O) is now called Meta, the company said on Thursday, in a rebrand that focuses on its ambitions building the “metaverse,” a shared virtual environment that it bets will be the next big computing platform.
The name change comes as the world’s largest social media company battles criticisms from lawmakers and regulators over its market power, algorithmic decisions and the policing of abuses on its platforms.
The metaverse, a term first coined in a dystopian novel three decades ago and now attracting buzz in Silicon Valley, refers broadly to the idea of a shared virtual environment which can be accessed by people using different devices.
The company, which has invested heavily in augmented and virtual reality, said the change would bring together its different apps and technologies under one new brand. It said it would not change its corporate structure.
In the latest controversy, whistleblower and former Facebook employee Frances Haugen leaked documents which she said showed the company chose profit over user safety. Zuckerberg earlier this week said the documents were being used to paint a “false picture.”
Facebook shares were up more than 3% late on Thursday afternoon.
In an interview with tech publication the Information, Zuckerberg said he has not considered stepping down as CEO, and has not thought “very seriously yet” about spinning off this unit.
This year, the company created a product team focused on the metaverse and it recently announced plans to hire 10,000 employees in Europe over the next five years to work on the effort.
“While it’ll help alleviate confusion by distinguishing Facebook’s parent company from its founding app, a name change doesn’t suddenly erase the systemic issues plaguing the company,” said Forrester Research Director Mike Proulx.
Zuckerberg said the new name also reflects that over time, users will not need to use Facebook to use the company’s other services.
