Facebook (NASDAQ: FB) certainly had its glory days as a company and as an action, but Thursday cannot be counted among them. The social media giant caved in much of the day, eventually settling at a marginal decline of just under 1%. A great new corporate initiative is greeted with a lot of shrugs from investors.
CEO Mark Zuckerberg announced in – of course – an article on his Facebook page on Wednesday that the company is setting up a billion dollar fund for content creators. These grants will be awarded to people who create content for both Facebook’s flagship site and its Instagram photo / video sharing companion.
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âWe want to create the best platforms for millions of creators,â Zuckerberg wrote. “Investing in creators is nothing new to us, but I am excited to expand this work over time. More details soon.”
True to the word “Zuck”, the technology giant followed up with some of the details in an official company blog post. He said he would spend the $ 1 billion in seed funding for creators to get their work done, bonuses (likely based on viewership), and milestone payments to meet certain goals.
Facebook’s obvious goal is to steal the spotlight from specialty content sites like TikTok and Clubhouse, which have been very popular and enduringly popular in video and audio chat, respectively. Investors might think this is an attempt to make money to become more competitive in such spaces; their very lukewarm reaction indicates a doubt that it will be too successful.
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Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of its CEO, Mark Zuckerberg, is a member of the board of directors of The Motley Fool. Eric Volkman owns shares of Facebook. The Motley Fool owns stocks and recommends Facebook. The Motley Fool has a disclosure policy.
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