Zuckerberg will buy the Meta name for what he earns in six hours

The new name chosen by the founder of Facebook is registered and its owners will not sell the brand for less than $ 20 million.

Mark Zuckerberg’s plan to give Facebook a facelift and turn it into a new brand under the name Meta has some flaws or other, starting without going any further with the new name chosen.

Meta is not just any word. From Facebook they point out that the metaverse, the word from which the new name derives, will be the next revolution in the way the Internet is used. “In that future you will be able to instantly teleport as a hologram to be in the office without having to travel, at a concert with friends or in your parents’ room to catch up,” Zuckerberg said during the presentation.

However, he is not the only one who has managed to see the benefits that the metaverse will bring, so much so that two Americans, Zach Shutt and Joe Darger, registered the name Meta in August as a company related to computers, electronics products and software. And they have the ball in their court, if the creator of the social network wants to continue using that name (the change is already effective) he will have to pay them about 20 million dollars.

For Meta PC 20 million it is an important amount that highly likely will not earn in his life, especially if one takes into account that he has 25 employees and less than a year of life. However, for Facebook it is a ridiculous amount. Mark Zuckerberg’s men take six hours to earn that amount. Only in 2020 they closed with a net profit of 29,146 million dollars and the consensus of FactSet analysts expects the figure to increase to 40,000 million at the end of 2021.

It is still too early to analyze whether Zuckerberg’s investment will continue the trend of the businessman so far – it turns everything it touches into gold – or if, on the contrary, it will end up not obtaining the expected success, an unknown scenario for the North American. In the absence of a crystal ball, the change seems to be enjoying the market and its shares have advanced more than 5% since the news and have only closed in red one session, that of last Tuesday, November 2, when their titles fell by about 0.6%.

Despite the fact that the behavior in the New York stock market is quite positive, analysts are quite cautious about it. “We believe it may take a long time for Facebook to organically develop the necessary content to drive adoption by consumers avid for games,” they say from Bloomberg Intelligence.

“While Facebook, now Meta’s vision of the metaverse and more immersive experiences is intriguing, the lack of content and higher prices could limit its adoption in the short term. We believe it may be at least three years before the Meta Quest virtual reality headsets reach an installed base of 15-20 million users, which is essential for the development of the Metaverso ecosystem, “the experts add.

The arrival of Meta coincides with a delightful moment in time for the company, which is being peppered with various controversies, something to which the market is no stranger. “This is an attempt to distance the company from controversy,” say analysts at Edmond de Rothschild.

Zuckerberg himself has affirmed that with the change they seek to disengage from the Facebook brand, which is “closely linked to a product.” Although the change is only aesthetic, the group’s platforms (Instagram, WhatsApp and Messenger) will maintain their corporate structure.

800,000 million in 2024

The $ 20 million it will cost him to appropriate the name is even more ridiculous if one takes into account the estimates of Bloomberg Intelligence, which suggest that Meta can reach a value of 800,000 million dollars in 2024 to which must be added that sectors such as Artificial Intelligence or virtual reality, closely linked to this new concept, will grow at an annual rate of 59% in the next five years. But the road to 800,000 million is not easy. “Part of a backward position with respect to the leaders Roblox and Epic Games”, they point from Bloomberg Intelligence.

“Meta has a long way to go to become the engine of the next great technology platform, with rivals Roblox, Epic Games and Tencent leading the way in this fledgling stage. The trio is further ahead in bringing live events to 3D virtual social worlds to take advantage of the myriad opportunities in the metaverse. Gaming companies have more experience with live virtual events and Meta will need to take advantage of this experience to fully realize its Horizon strategy and reduce the gap with these leaders “, point out the experts.