Mark Zuckerberg has insisted on being the forerunner of the metaverse, or at least that has been his goal in recent years. But it is no secret to anyone that the project is still very early and does not seem to have a very clear horizon.
Not only are users skeptical of the project, but investors are also not very convinced of its viability. Altimeter Capital Management, an investment firm shareholder of Meta, sent an open letter to Zuckerberg. In it they request, among other things, that the company cut its investment in Reality Labs and all projects linked to virtual life. Brad Gerstner, CEO of the firm, who wrote the letter, says that Meta must rebuild the trust of its investors, employees and the technology community, to regain its importance. “In short, Meta needs to get in shape and focus,” he says in the letter.
Said company has been characterized by supporting Meta’s projects even with public skepticism against it. However, enthusiasm is waning. This is how they expressed it in the letter, where they explain that the increase in expenses added to the fall in the value of his shares, generates greater mistrust about the future of Meta. This is why the firm proposes to take firm measures to reduce uncertainty and economic risks, and of course, the metaverse is within the main points of change.
Specifically, Gerstner recommends “a three-step plan that will double free cash flow to $40 billion a year.” Said plan consists of reducing personnel expenses by 20%; cut investments in capital goods by 5,000 million dollars and limit investments in the metaverse and other projects of Reality Labs”. Gerstner considers that 5,000 million annually is more than enough to continue with the projects in the metaverse.
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Shareholder asks Mark Zuckerberg not to spend so much money on the metaverse