Bad reputation has become a big problem. FB changed its name to highlight its ambition and weakness

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Tencent technology news on October 22, the market value of social network giant Facebook is nearly $1 trillion, which is the sixth highest listed technology company in the world. In the past year, Facebook’s revenue has increased by 56% and its share price has risen by more than a quarter. Nearly 3 billion people use its products every month. With such a brilliant success, why does Facebook want to change its name?
Facebook has not given the official reason for the change of name, possibly because the company has surpassed the original intention of Mark Zuckerberg to establish the social network in Harvard University Dormitories 17 years ago. Today, Facebook covers many other social applications (such as instagram, WhatsApp, Messenger) and video hardware (oculus, portal).
Facebook has launched its own digital wallet (Novi) and may help launch cryptocurrency (Diem). Zuckerberg predicts that people will eventually more associate his company with the “metauniverse” Connect, rather than simply regard it as a social media platform. Metauniverse is a virtual space for work, entertainment and other activities. This week, Facebook said that the company will hire 10000 people to build metauniverse.
If Facebook’s social network takes a back seat, there may be reasons to restructure with a new name. Facebook is not the first technology giant to do so. In 2015, Google restructured and established its holding parent company, alphabet, which includes search engine and many other subsidiaries. Under this model, Facebook will become a common application in a wider application family , although it is by far the largest “cash cow”.
At the same time, Facebook may have another less likable motivation to change its name. Despite Facebook’s success in earning income, its brand has been tarnished. The social network has been accused of inciting riots in the U.S. Capitol and spreading juvenile anorexia, terrorism and hate speech.
In early October, former employee Frances Haugen told Congress that Facebook failed to control and audit the content on its platform and covered up the harm to young users in the United States. Public trust in it is lower than that of most other technology giants and is declining. Although Facebook began marking its applications as “from facebook” two years ago But its new “smart glasses” (which can record videos and answer calls) have only the logo of its partner ray ban.
Facebook investors do not seem to be troubled, but the growing toxicity of its social applications may poison other projects. On October 19, Democratic senators signed a letter saying that Novi and Diem should be abolished because “When it turns out that Facebook’s existing ability to manage risks and protect consumer security is completely insufficient, we can’t believe that it can manage the payment system or digital currency.”.
In most of the criticisms of Facebook and other broader technology companies, Zuckerberg himself has never been negatively affected. As an omnipotent founder, he is better known than his peers in tiktok, youtube and other social networks. Normally, a brand facing a reputation crisis may abandon an unpopular CEO. But Zuckerberg’s His unshakable position may explain why he wants to abandon the Facebook brand. (reviewed by Tencent technology / Jinlu)