Facebook Owner Is Behind $60-Million Deal for Meta Name Rights

A MetaBank spokesperson also confirmed Meta Platforms' involvement.

By Reuters | Updated: 14 December 2021 13:39 IST

Facebook Owner Is Behind $60-Million Deal for Meta Name Rights

Meta has invested heavily in virtual reality and augmented reality

Highlights

A MetaBank spokesperson confirmed Meta Platforms' involvement in the deal
Beige Key is said to be affiliated with the Meta Platforms
Facebook parent firm announced its shift to Meta Platforms in October

Meta Platforms, the owner of social media network Facebook, is behind a $60 million (roughly Rs. 455.1921 crore) deal to acquire the trademark assets of the US regional bank Meta Financial Group, spokespeople for the companies said on Monday.

The deal underscores how valuable the Meta name has become for the technology giant, which is betting that its focus on the metaverse — shared digital spaces accessed via the internet through an array of devices — will pay off handsomely in the coming years. Meta Financial had said in a regulatory filing on Monday that a Delaware company called Beige Key LLC agreed to acquire the worldwide rights to its company names for $60 million in cash.

It did not disclose who the owner of Beige Key was. "Beige Key is affiliated with us and we have acquired these trademark assets," a Meta Platforms spokesperson said.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

A MetaBank spokesperson also confirmed Meta Platforms' involvement. As well as offering products through its MetaBank subsidiary including consumer savings, loans and credit cards, and commercial lending, Meta Financial partners with institutions including government agencies and financial technology firms to offer banking services with the aim of bolstering financial inclusion. Facebook said in October its parent company had changed its name to Meta Platforms.

The tech giant, which has invested heavily in virtual reality and augmented reality, sees the metaverse as the successor to the mobile internet. Last week, Meta Platforms opened up its previously invite-only Horizon Worlds app, where users of its Quest virtual reality headsets can play games and interact as avatars, to over-18 users in the United States and Canada.

The metaverse concept, which has cropped up on several Silicon Valley companies' earnings calls and which will require cooperation among tech giants, could be more than a decade away from being fully realized. The Meta Platforms spokesperson said the company engaged in discussions with Meta Financial before Facebook's name change was announced.

Meta Offers Deferral Programme for Employees Unready to Return to Office

In the filing, Meta Financial said it had embarked on a brand strategy review earlier this year, but the MetaBank spokesperson declined to comment on the negotiations beyond the contents of the filing. Meta Financial's shares were trading 1.5 percent lower in mid-afternoon trading, giving it a market capitalization of around $1.74 billion (roughly Rs. 13203.80 crore)

Meta Platforms was up 1.6 percent, valuing it at $933 billion (roughly Rs. 7,08,06,09 crore).

© Thomson Reuters 2021

Will Snapdragon's new 2022 chips make it more prominent as a brand? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.