Facebook on Thursday announced that it has changed its company name to Meta.
Is it a smart move? Let’s admit it. Facebook is an ageing company. It has become like a part of our furniture. It is just there. It is on the defensive due to privacy issues.
Facebook whistle blower Haugen has not helped matters either. The core momentum and energy levels are declining. The company needed a booster shot.
Rebranding provides this opportunity
It is well timed also. Timing is everything in business. The company has allocated billions of dollars to promote the new brand. They will be ready to spend disproportionate amount to prove that their decision is right. The sheer amount of intense promotion and excitement will drive up the stocks.
“Today we are seen as a social media company, but in our DNA we are a company that builds technology to connect people, and the metaverse is the next frontier just like social networking was when we got started,”
Meta CEO Mark Zuckerberg
Our hope is that within the next decade, the metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce, and support jobs for millions of creators and developers,” Zuckerberg wrote in a letter on Thursday.
We believe the metaverse will be the successor to the mobile internet,” Zuckerberg said.
Facebook is not the first company to do this. Other companies have done this before with good results.
If Facebook’s rebranding sounds familiar, it’s because Google did something very similar in 2015, forming its parent company Alphabet.
In 2007, Apple Computer dropped the second word from its name — the same year as it released the first iPhone.
In 2018, Dunkin’ Donuts announced a similar move, dropping the word “Donuts” from its branding.
Kentucky Fried Chicken similarly shortened its name to KFC in 1991.
in 2001, Philip Morris, the manufacturer behind iconic cigarette brand Marlboro, changed the name of its parent company to the Altria Group.
So the company rebranded as WW International, aiming to become more of a lifestyle and wellness brand.