Facebook set to rebrand itself with new parent company name: report | CBC News

Facebook CEO Mark Zuckerberg has been talking up the metaverse, a digital world where people can move between different devices and communicate in a virtual environment, since July. The group has invested heavily in virtual reality and augmented reality, developing hardware such as its Oculus VR headsets and working on AR glasses and wristband technologies.

The move would likely position the flagship app as one of many products under a parent company overseeing brands such as Instagram and WhatsApp, according to the report. Google adopted such a structure when it reorganized into a holding company called Alphabet in 2015.

Facebook said it does not comment on “rumour or speculation.”

Rebrand would revamp tarnished image: analysts 

If true, the rebranding would make sense as the core Facebook business becomes less important to the group and it seeks to revamp an image tarnished by regulatory and legal scrutiny of how it handles user safety and hate speech, analysts said.

“It reflects the broadening out of the Facebook business. And then, secondly, I do think that Facebook’s brand is probably not the greatest given all of the events of the last three years or so,” internet analyst James Cordwell at Atlantic Equities said.

Facebook is under wide-ranging scrutiny from global lawmakers and regulators over its content moderation practices and harms linked to its platforms, with internal documents leaked by a whistleblower forming the basis for a U.S. Senate hearing last week.

WATCH | Ex insider blows the whistle on Facebook’s business practices: 

Whistleblower put spotlight on the future of Facebook | Conversation Panel

A Facebook whistleblower delivered scathing criticism of the company this week, calling it morally bankrupt for putting profit over the safety of users, including children. The Conversation Panel discusses what the testimony means for the future of the company and its users. 14:36

“Having a different parent brand will guard against having this negative association transferred into a new brand, or other brands that are in the portfolio,” said Shankha Basu, associate professor of marketing at University of Leeds.

Last month, Facebook appointed Andrew Bosworth, who heads up the social media company’s augmented reality and virtual reality efforts, including products like its Oculus Quest VR headset, as chief technology officer.

Metaverse, a term first coined in a dystopian novel three decades earlier, is popular in Silicon Valley and has been referenced by other tech firms such as Microsoft. The popular children’s game Roblox describes itself as a metaverse company. Epic Games’ Fortnite is also considered to be part of the metaverse.

Zuckerberg plans to talk about the name change at the company’s annual Connect conference on Oct. 28, but according to the Verge, it could be unveiled sooner.