Meta's metaverse venture hinges on shareholder votes

Jafar224

Meta has faced numerous challenges due to its pursuit of the metaverse! The current hindrance arises from potential risks and negative societal impacts associated with the metaverse, demanding that Meta assess the necessity of venturing into the "metaverse." If shareholders don't approve, Meta's initial efforts might be in vain!

The American community platform giant, Meta, has consistently displayed a strong desire to enter the metaverse. However, concerns have also arisen about the existing risks of social media, such as fraud and fake news, which might be amplified in the virtual world. There have been reports of instances where individuals faced harm in the metaverse. Towards the end of last year, Meta shareholder Arjuna Capital submitted a proposal aimed at requiring the company to assess the need to enter emerging technologies like the metaverse. It also asked for third-party evaluation of the potential risks of the metaverse, which could have negative implications for citizens' and human rights, and sought a shareholder vote.

Although Meta acknowledges the risks associated with creating a virtual world, it believes that the proposal should not be voted on. Meta is attempting to categorize the development of the metaverse as an ordinary business operation, which would be exempt from shareholder voting. The company even plans to use relevant regulations from the U.S. Securities and Exchange Commission (SEC) to block the vote. However, the SEC ruled earlier this month that the proposal goes beyond ordinary business transactions. Consequently, Mark Zuckerberg, Meta's CEO, will need to submit the proposal to shareholders later this year. It is worth noting that Meta declined to comment on the SEC's decision, but the company had earlier stated that it wouldn't develop the metaverse and would collaborate with policymakers and industry experts. Meta pledged $50 million to ensure that it develops metaverse businesses responsibly, focusing on privacy, security, fairness, and inclusivity.

Meta has made significant sacrifices for the metaverse, and if it doesn't succeed, it could have substantial repercussions for Mark Zuckerberg. While Mark Zuckerberg is the controlling force behind Facebook, he currently faces several adverse factors.

Simoni797

The potential for development in the metaverse is indeed enormous, and if one can seize such a business opportunity, there's a chance to make a significant profit.

Neel4141

I also think Facebook doesn't need to take unnecessary risks; playing it safe is fine.

Ira1991

In fact, companies, like individuals, don't necessarily have to chase after trends.