Facebook invests billions in metaverse efforts as ad business slows

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Facebook said on Monday (Oct 25) it will start breaking out the financials for its virtual and augmented reality unit, an announcement that comes as its main advertising businesses face \u0022significant uncertainty.\u0022 Facebook warned that Apple Inc\u0027s new privacy rules would weigh on its digital business in the

Facebook said on Monday it will start breaking out the financials for its virtual and augmented reality unit, an announcement that comes as its main advertising businesses face"significant uncertainty."

The financial commitment by the world's largest social media company to building the"metaverse"comes as the company is swamped by coverage of documents leaked by former Facebook employee and whistleblower Frances Haugen which she said showed the company chose profit over user safety. Facebook has said Haugen mischaracterized its work.

Facebook, which has invested heavily in virtual reality and augmented reality , including buying companies like Oculus, this year created a product team to work on the metaverse. This month, it said it plans to hire 10,000 employees in Europe over the next five years to work on this initiative. The world's largest social media network is under scrutiny from global lawmakers and regulators, including from the Federal Trade Commission which has filed an antitrust lawsuit alleging anticompetitive practices.

Facebook said it expects fourth-quarter revenue to be in a range of US$31.5 billion to US$34 billion. Analysts had forecast US$34.84 billion in revenue, or a 24.1 per cent jump, according to IBES data from Refinitiv.

 

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