Meta’s CEO Mark’s ambitions Zuckerberg, is highly used to create virtual worlds, the company’s immersive digital world. To make the plan work, the group (which owns Facebook, Instagram and WhatsApp) will lose money over the next three to five years.
According to Bloomberg, the executive himself made a forecast of “significant” financial losses at his annual meeting with shareholders on Wednesday (25th).
win or lose
speech Zuckerberg Given after a shareholder asked Meta about the return on investment of the project.
Commonwealth Zuckerberg It even announced plans to invest $150 million in training programmers who can build virtual environments that will be used in this parallel world.
Despite the potential for losses, the executive stressed at the meeting that the project will generate profits as people build businesses and sell virtual goods and services.
“We want everyone to be able to use hardware as much as possible and ensure the growth of the digital economy,” Zuckerberg told shareholders.
In order for consumers to achieve this with an immersive experience and low cost, the technical challenges are enormous. So it requires a lot of investment and time.
According to the Meta Board, many products designed for the Metaverse, in which users will be 100% integrated, may not be viable for the next 10 or 15 years.
The executive added at the meeting that the company’s current revenue-generating bet is to invest in its short-video service Reels.
Addicted to the Metaverse?
In a report to Business Insider, company officials said Zuckerberg was so excited and involved in building the virtual world that it had become a point of frustration.
“[É] The only thing Mark wants to talk about,” said a former employee who recently left the company, according to the report.
In 2021 alone, Meta is estimated to have spent $10 billion (closer to R$48 billion at current rates) on its metaverse concept.
The company will also have 10,000 employees dedicated to this project alone — Zuckerberg wants to double the size of the team.
However, this expansion should take longer as Meta implemented a hiring freeze earlier this month.
Shareholder proposal on hold
At the shareholder meeting, Mark Zuckerberg rejected 12 proposals. There have been calls for the company to commission a report and release a board member’s vote on whether it would be “prudent and appropriate” for the group to proceed with Metaverse.
Other rejected proposals included amending concealment clauses in employment contracts related to harassment and discrimination, publishing an independent human rights impact assessment, and full disclosure of Meta’s lobbying and public policy activities, according to the business website.
Throughout 2021, Facebook has again faced criticism over how it handles content control, especially after complaints from former director Frances Haugen that showed its employees were unhappy with how the platform put profit over user safety .