Facebook Should Stop Buying The Metaverse & Start Buying Companies Like Sony, Nintendo, Coinbase & OpenSea

Facebook is a crater. Can it find a way to survive through the Metaverse, or should it find salvation elsewhere? The Metaverse is probably cool in the end, but it’s not the path to long-term (or short-term) growth. Nor can it fix Facebook’s reliability issues. It’s time for Facebook to buy some companies that are restructuring and have enough vision to grow steadily and calm the market. It also requires adult supervision, or at least that’s what people are saying.. Need to start due diligence for Sony, Nintendo, Coinbase, OpenSea?

Big trouble with metacity

Facebook is in trouble. For the first time, the number of global users has decreased. Instagram and WhatsApp were steroids, but they are worn out. Almost as bad as it is, no one likes Facebook. Hogen Leak Followed by Cambridge Analytica Scandal, Caused permanent damage to the brand (despite the name change, especially betting on the ranch is one strategic result). People over the age of 65, one of the most loyal early users of the traditional platform, have abandoned them, though not really their fault (they are dying). The largest user population is 25-35 years old, not TikTok’s demographics. 25% are 10-19 years old. TikTok users 10-29 years ago make up almost half of all TikTok users, but Instagram users are under 10 years old. % Of the group aged 13-17 (and Facebook is less than 5% in the same demographic).And who has even heard Instagram reelBy the way, what is TikTok’s rival? 2 views vs 450 views will be the point for each post.. Facebook lost 20% of its value in one day. This may or may not be the end of volatility. When this happens, everyone is piled up, rebounding is especially difficult under normal circumstances, and even more difficult if there is no rebound plan beyond the “metaverse.” But is that the right vision? (It doesn’t act as a distraction.) Other threats include new privacy laws (and Apple’s privacy policy) and the entire Web 3.0 trend, but in reality they do. Privacy laws and policies and Web 3.0 are major threats to our business model for Facebook and any company that makes a lot of money by relying heavily on user-generated data. Remember, clicks are monetized every minute every day.

So what do you do?

First, stop buying Metaverse

This is too abstract to understand, not to mention love, as I am bullish on business models that are not clearly defined as emerging technologies. They are already spending over $ 10 billion At Metaverse, there is little consensus on what the Metaworld will look like, what it will enable, and how it will generate profitable revenue. Perhaps another company, like its still beloved tech start-up, may convince investors that Metavision should spike its reputation, no matter how crazy it is. The unicorn thing you know. However, Facebook is unreliable and declining. How confident can an investor be in a single voting block that seems lost? Not to mention techno skeptics who are still discussing the features of virtual worlds that haven’t been seriously envisioned yet? Or is it a transaction that defines a metaverse?

Facebook needs to stop acquiring Metaverse real estate and immediately delay the expansion of Facebook Reality Labs.

But what then?

Then start buying stability, growth, maturity, and enough vision

GE’s approach to building a corporate empire has long passed. In fact, this is officially finished.. Facebook (Mkt cap $ 6,600B) buys General Motors (Mkt cap $ 75B), Dell (Mkt cap $ 450B), or Toll Brothers (Mkt cap $ 70B) because it’s important to stay in the swimlane. please do not. Also, increased antitrust sentiment can prevent Facebook from doubling or doubling in social media companies. So what kind of company should you buy?

Acquisition criteria

There are lots of suggestions about what Facebook should do and what companies Facebook should buy (or sell). But let’s start with the criteria, not the targets. Facebook needs stability. You don’t need profit yet, but you need growth. It is stable growth, not unstable growth. But above all, it requires reliability. In reality, you need more than that. You need to mature. Stakeholders and customers are needed to make a company, especially its leadership, look like Buffett. I think this is a ridiculous stretch, but you understand the idea. Investors need to put “trust” in Facebook leadership.Not enough for now.. Facebook should consider adding members to the management team that the investment community is serious about, apart from the unrealistic possibility that management turmoil is at the top. Sadly, team members have to overcome some difficult negative preconceptions about where the company was, where it is now, and where it is heading. Despite 58% of Zuckerberg’s voting rights, it is clear that the company’s operational and strategic vision can be influenced by more than one person’s approval / disapproval. Vision is also an integral part of every company. But it must be a planet. And keep in mind that the entire social family is no longer foresighted. It’s part of an old large family. Gambit, which replaces the old business / revenue model with an undefined model, reminds us of dot.com companies that have promised to take over the world. At the time, they were taken seriously, but now they are just funny artifacts of our digital past. Business models are constantly changing faster than we see them.

Acquisition target

There are two acquisition target lists. The first is in Facebook’s swimlane and the second is adjacent to the lane.

Targets in the lane that are completely crazy and not so crazy

• Sony
• Nintendo
• Electronic Arts
• Charter Communications …

Adjacent lane targets that are completely crazy and not so crazy

Sure, these (and others) sound crazy, but are they really crazy? Facebook is both a media company and a technology company. The same is true for many of the above “in-lane” companies. Adjacent companies like Coinbase (aka Libra’s Revenge) are in / or should be within Facebook’s wider space. OpenSea, the leading NFT marketplace, blends digital media, technology and cryptocurrencies. Now free from the infrastructure business, IBM is in all sorts of related areas.

When and how

Rebounds, no matter how creative or reliable, are time consuming. They also cost money. It costs a lot of money to rebound. It’s well above the $ 10 billion that Facebook is already spending on the Metaverse. Unfortunately, company stocks are not the old currency. Nor is there widespread confidence that stocks will recover. This makes it even more difficult to spend on acquisitions. Fortunately, Facebook (Meta Platforms) throws away a lot of cash every year. The timing of the rebound is difficult. Perhaps some small acquisitions can be made quickly to convince stakeholders that a new path has been discovered. Large-scale acquisitions require more time and currency.

There are two stages of rebound. Step 1 is about strategy and acquisition, while step 2 is about credibility and credibility. Once leadership is disbanded, it is difficult and sometimes impossible to rebuild. If I have a choice, I’ll take a step – it’s that hard. Step 2 may not be a beginner. If credibility, credibility, or credibility is lost, instead of looking at Facebook’s acquisitions, the metaplatform itself may appear in some lists as acquisitions.