Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Business one solution for the metaverse

The metaverse doesn't seem to be popular among investors, but there is one way to keep Meta and Reality Labs afloat. (Photo by SERGIO FLORES/AFP via Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Nov 11, 2022

One Solution to the Metaverse Problem

Meta Platforms is beginning to look like two companies—a social-media platform and a digital-reality platform—and investors are growing tired of it.

Key Details

  • Some analysts are beginning to suggest that Meta CEO Mark Zuckerberg’s vision of the metaverse is being pitched to the wrong audience. 
  • Meta’s social-media platforms Facebook and Instagram are money-making operations, but Zuckerberg’s Reality Labs is bleeding money—and he says that’s likely to continue. 
  • Taking a gamble on a new investment isn’t unusual for a company like Meta, but when the company is implementing layoffs and losing revenue, investors are questioning whether or not the metaverse is worth it.
  • Meta’s stock has fallen 67% so far this year.

Why it’s news

Meta recently announced mass layoffs—nearly 11,000 staff members. Compared to rival tech companies like Alphabet and Pinterest, shareholders value Meta at nearly half of its peers.

Some shareholders like Altimeter Capital Management have asked Meta to reduce its Reality Labs by at least half. Analysts and Wall Street seem to doubt the success of the metaverse. 

But there is another option for the metaverse’s survival. Venture-capital firm Greycroft’s board member Kamran Ansari suggested the possibility that Meta could divide itself into two separate companies. 

“It’s very doable—you’ve seen companies split up and spin stuff off,” Ansari says. 

If Reality Labs and Meta were two different entities, the experimental division could separate itself from some of Meta’s other struggles such as slow ad revenue and competition from TikTok.

Other major companies have taken this approach when it comes to high-risk investment. Elon Musk, for example, separated SpaceX from Tesla, and Jeff Bezos built Blue Origin outside of Amazon.

Meta is facing a difficult economy, but so are all other major tech companies. If it is free from the extra cost of Reality Labs, the company could better weather the economic storm. 

 Backing up a bit

In a conference this week, New York University Professor Scott Galloway predicted that Mark Zuckerberg’s metaverse would ultimately fail.

Galloway is hardly the first to suggest the metaverse’s failure—but he did point out more obscure failures in the project. 

Meta’s VR headset is difficult to use, Galloway claims, and the metaverse is just “a 3D rendering of the World Wide Web.”

Meta is under increasing scrutiny for its focus on developing the metaverse—especially after reporting yet another drop in earnings.

Most major tech companies are floundering this year and Zuckerberg seems to be placing all his bets on the metaverse. 

Galloway criticized the overall concept of the metaverse, noting that a 3D model of the internet isn’t all that revolutionary. 

Home / News / One Solution to the Metaverse Problem
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com