From Breakingviews - Mark Zuckerberg will split Meta, take the 'verse
Rather than make Meta shareholders collectively pay for Zuckerberg’s ambitions, he could fund them himself through dividends from the parent company. If all the cash flow from operations went back to shareholders, representing about $18 a share, Zuckerberg would find himself with some $6 billion to reinvest in the project based on his stake. That’s not enough given current spending plans, but a few key investors who sign on to his vision might be keen to invest alongside him.
, any shareholder will struggle to force him to do otherwise. Still, there’s a financial case for him to refocus his efforts. Facebook and Instagram are under the regulatory microscope – and that is starting to hurt the metaverse, too. In December, a high-profile trial between the U.S. Federal Trade Commission and Meta kicked off over the company’s deal to buy virtual reality app developer Within.
Plus, the social media business needs intense focus as spending starts to slow. Zuckerberg – who has never been an operator of a public company through an economic downturn – might not be the best person to lead during a slump. He may loathe to hand over the reins without a distraction. Splitting Meta and taking the 'verse could be a good plan.
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