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.
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.
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.
Meta Platforms was up 1.6 percent, valuing it at $933
billion. © Reuters