Meta is developing a new social media platform aimed at replacing Twitter, following its acquisition by Elon Musk in recent months.
The new platform by Meta will utilize a framework similar to that of Mastodon, a service akin to Twitter launched in 2016. This move will allow Meta to capitalize on the current turmoil, characterized by widespread cost-cutting at the company now led by Elon Musk.
Since Musk’s takeover of Twitter late last year, the platform has faced challenges in maintaining its advertising base. Advertisers pulled back their investments following Twitter’s decision to reinstate suspended accounts and introduce a paid verification feature, which led to scammers impersonating companies.
The timing of Meta’s venture into a Twitter-like platform coincides with challenges faced by Facebook, its flagship platform, which struggles to appeal to a younger demographic and shows little immediate return on its substantial investments in the metaverse. This virtual environment allows users to interact and work within it.
Furthermore, Instagram, Meta’s video-sharing app, is encountering fierce competition, with content creators and popular influencers migrating to TikTok.
Metaverse interest is waning
The release date for Meta’s new application remains unspecified. Thomas Hayes, chairman and managing member of Great Hill Capital based in New York, commented, “Meta’s track record shows they excel more at acquisitions and expansion than at innovation or development… Their attempt to replicate Twitter is essentially a defensive strategy.”
Hayes further noted, “They’re exploring every option… With a mini-blog site akin to Twitter, there’s an anticipation that monetization of the platform could commence much more swiftly compared to the investments being poured into the metaverse.”
Analysts have suggested that Meta’s investments in the metaverse are unlikely to contribute to revenue growth until 2030.
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