Facebook Inc (NYSE:FB) may soon be known by a different name. The rumors surfaced following a leading tech blog article suggesting that the social media giant may soon rebrand itself to focus on expanding metaverse.
In response, Facebook said it does not comment on "rumor or speculation."
The report added that Mark Zuckerberg, Facebook's Chief Executive Officer, is likely to float the idea at the company's annual conference set to be held on Thursday, October 28. The name change may also be revealed earlier than expected, it added.
Why is FB changing its name?
It seems that the US tech giant wants to shed its social media-only image and embrace the parent company outlook that oversees several brands such as Whatsapp, Instagram, Oculus, etc. The move is similar to what Google undertook in 2015, rebranding itself as Alphabet, allowing it to develop into a larger tech conglomerate. Under the parent firm Alphabet, Google became one of the many subsidiaries.
The report by American technology site The Verge claims FB's planned name change move aims to build a brand in the metaverse.
In a recent tweet, the company claimed Metaverse "is the next evolution of social technology".
In the coming years, FB aims to push its hardware business such as video-calling devices, virtual-reality headsets, smart glasses, etc. The planned rebrand move sits in line with its metaverse vision.
The Verge adds that the name change could serve its ground plan for futuristic work and move away from the social media image.
FB scandals behind the name change?
FB has been hounded by antitrust allegations, spreading misinformation and fake news on its platform and abusing its dominance in the market by stifling upcoming players.
The firm has repeatedly stressed in numerous Congressional hearings that it doesn't “deliberately push” objectionable content.
It also suffered a US$5-billion penalty by the FTC over allegations of tax avoidance.
The social media giant's biggest controversy-to-date is probably the Cambridge Analytica Scandal, where it was accused of shaping people's voting decisions through misinformation.
The tech giant's market capitalization crossed the US$1-trillion mark in June this year, making it the fifth US company to cross the milestone. The firm's worth has swelled 10 times over the last nine years.
Facebook currently earns its revenues from personalized ads. The upcoming hardware business unit is expected to add to the top line.