Saying Bye to Facebook: Why Companies Change Their Name
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Saying Bye to Facebook: Why Companies Change Their Name

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As anyone who’s started a company knows, choosing a name is no easy task.

There are many considerations, such as:

  • Are the social handles and domain name available?
  • Is there a competitor already using a similar name?
  • Can people spell, pronounce, and remember the name?
  • Are there cultural or symbolic interpretations that could be problematic?

The list goes on. These considerations are amplified when a company is already established, and even more difficult when your company serves billions of users around the globe.

Facebook (the parent company, not the social network) has changed its name to Meta, and we’ll examine some probable reasons for the rebrand. But first we’ll look at historical corporate name changes in recent history, exploring the various motivations behind why a company might change its name. Below are some of the categories of rebranding that stand out the most.

Social Pressure

Societal perceptions can change fast, and companies do their best to anticipate these changes in advance. Or, if they don’t change in time, their hands might get forced.

corporate name changes social pressure

As time goes on, companies with more overt negative externalities have come under pressure—particularly in the era of ESG investing. Social pressure was behind the name changes at Total and Philip Morris. In the case of the former, the switch to TotalEnergies was meant to signal the company’s shift beyond oil and gas to include renewable energy.

In some cases, the reason why companies change their name is more subtle. GMAC (General Motors Acceptance Corporation) didn’t want to be associated with subprime lending and the subsequent multi-billion dollar bailout from the U.S. government, and a name change was one way of starting with a “clean slate”. The financial services company rebranded to Ally in 2010.

Hitting the Reset Button

Brands can become unpopular over time because of scandals, a decline in quality, or countless other reasons. When this happens, a name change can be a way of getting customers to shed those old, negative connotations.

corporate name changes restart button

Internet and TV providers rank dead last in customer satisfaction ratings, so it’s no surprise that many have changed their names in recent years.

We Do More

This is a very common scenario, particularly as companies go through a rapid expansion or find success with new product offerings. After a period of sustained growth and change, a company may find that the current name is too limiting or no longer accurately reflects what the company has become.

corporate name changes broadening the scope

Both Apple and Starbucks have simplified their company names over the years. The former dropped “Computers” from its name in 2007, and Starbucks dropped “Coffee” from its name in 2011. In both these cases, the name change meant disassociating the company with what initially made them successful, but in both cases it was a gamble that paid off.

One of the biggest name changes in recent years is the switch from Google to Alphabet. This name change signaled the company’s desire to expand beyond internet search and advertising.

Square also found itself in a similar situation. The “Square” brand had become synonymous with its commerce solutions, so the parent company became Block to help the company signal a shift into other areas of business.

The Start-Up Name Pivot

Another very common name change scenario is the early-stage name change.

start-up name change

In the world of music, there’s speculation that limited melodies and subconscious plagiarism will make creating new music increasingly difficult in the future. Similarly, there are millions of companies in the world and only so many short and snappy names. (That’s how we end up with companies called Quibi.)

Many of the popular digital services we use today started with very different names. The Google we know today was once called Backrub. Instagram began life as Bourbn, and Twitter began life as “Twittr” before finding a spare E in the scrabble pile.

Trademark Problems

As mentioned above, many companies start out as speculative experiments or passion projects, when a viable, well-vetted name isn’t high on the priority list. As a result, new companies can run into trademark problems.

corporate name change trademark

This was the case when Picaboo, the precursor of Snapchat, was forced to change their name in 2011. The existing Picaboo—a photobook company—was not thrilled to share a name with an app that was primarily associated with sexting at the time.

The fight over the name WWF was a more unique scenario. In 1994, the World Wildlife Fund and the World Wrestling Federation had a mutual agreement that the latter would stop using the initials internationally, except for fleeting uses such as “WWF champion”. In the end though, the agreement was largely ignored, and the issue became a sticking point when the wrestling company registered wwf.com. Eventually, the company rebranded as WWE (World Wrestling Entertainment) after losing a lawsuit.

Course Correction

To err is human, and rebranding exercises don’t always hit the mark. When a name change is universally panned or, perhaps worse, not relevant, it’s time to course correct.

name changes course correction

Tribune Publishing was forced to backtrack after their name change to Tronc in 2016. The widely-panned name, which was stylized in all lower case, was seen as a clumsy attempt to become a digital-first publisher.

Why Is Facebook Changing Its Name?

Facebook undertook this name change for a number of reasons, but chief among them is that the brand is irrevocably associated with scandals, negative externalities, and Mark Zuckerberg.

Even before the most recent outage and whistle-blowing scandal, Facebook was already the least-trusted tech company by a long shot. Mark Zuckerberg was once the most admired CEO in Silicon Valley, but has since fallen from grace.

It’s easy to focus on the negative triggers for the impending name change, but there is some substance behind the change as well. For one, Facebook recognizes that privacy issues have put their primary source of revenue at risk. The company’s ad-driven model built upon its users’ data is coming under increasing scrutiny with each passing year.

As well, there is substance behind the metaverse hype. Facebook first signaled their ambitions in 2014, when it acquired the virtual reality headset maker Oculus. A sizable portion of the company’s workforce is already working on making the metaverse concept a reality, and there are plans to hire 10,000 more people in Europe over the next five years.

It remains to be seen whether this immense gamble pays off, but for the near future, Zuckerberg and Facebook’s investors will be keeping a close eye on how the media and public react to the new Meta name and how the transition plays out. After all, there are billions of dollars at stake.

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Every Mission to Mars in One Visualization

This graphic shows a timeline of every mission to Mars since 1960, highlighting which ones have been successful and which ones haven’t.

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Timeline: A Historical Look at Every Mission to Mars

Within our Solar System, Mars is one of the most similar planets to Earth—both have rocky landscapes, solid outer crusts, and cores made of molten rock.

Because of its similarities to Earth and proximity, humanity has been fascinated by Mars for centuries. In fact, it’s one of the most explored objects in our Solar System.

But just how many missions to Mars have we embarked on, and which of these journeys have been successful? This graphic by Jonathan Letourneau shows a timeline of every mission to Mars since 1960 using NASA’s historical data.

A Timeline of Mars Explorations

According to a historical log from NASA, there have been 48 missions to Mars over the last 60 years. Here’s a breakdown of each mission, and whether or not they were successful:

#LaunchNameCountryResult
11960Korabl 4USSR (flyby)Failure
21960Korabl 5USSR (flyby)Failure
31962Korabl 11USSR (flyby)Failure
41962Mars 1USSR (flyby)Failure
51962Korabl 13USSR (flyby)Failure
61964Mariner 3US (flyby)Failure
71964Mariner 4US (flyby)Success
81964Zond 2USSR (flyby)Failure
91969Mars 1969AUSSRFailure
101969Mars 1969BUSSRFailure
111969Mariner 6US (flyby)Success
121969Mariner 7US (flyby)Success
131971Mariner 8USFailure
141971Kosmos 419USSRFailure
151971Mars 2 Orbiter/LanderUSSRFailure
161971Mars 3 Orbiter/LanderUSSRSuccess/Failure
171971Mariner 9USSuccess
181973Mars 4USSRFailure
191973Mars 5USSRSuccess
201973Mars 6 Orbiter/LanderUSSRSuccess/Failure
211973Mars 7 LanderUSSRFailure
221975Viking 1 Orbiter/LanderUSSuccess
231975Viking 2 Orbiter/LanderUSSuccess
241988Phobos 1 OrbiterUSSRFailure
251988Phobos 2 Orbiter/LanderUSSRFailure
261992Mars ObserverUSFailure
271996Mars Global SurveyorUSSuccess
281996Mars 96RussiaFailure
291996Mars PathfinderUSSuccess
301998NozomiJapanFailure
311998Mars Climate OrbiterUSFailure
321999Mars Polar LanderUSFailure
331999Deep Space 2 Probes (2)USFailure
342001Mars OdysseyUSSuccess
352003Mars Express Orbiter/Beagle 2 LanderESASuccess/Failure
362003Mars Exploration Rover - SpiritUSSuccess
372003Mars Exploration Rover - OpportunityUSSuccess
382005Mars Reconnaissance OrbiterUSSuccess
392007Phoenix Mars LanderUSSuccess
402011Mars Science LaboratoryUSSuccess
412011Phobos-Grunt/Yinghuo-1Russia/ChinaFailure
422013Mars Atmosphere and Volatile EvolutionUSSuccess
432013Mars Orbiter Mission (MOM)IndiaSuccess
442016ExoMars Orbiter/Schiaparelli EDL Demo LanderESA/RussiaSuccess/Failure
452018Mars InSight LanderUSSuccess
462020Hope OrbiterUAESuccess
472020Tianwen-1 Orbiter/Zhurong RoverChinaSuccess
482020Mars 2020 Perseverance RoverUSSuccess

The first mission to Mars was attempted by the Soviets in 1960, with the launch of Korabl 4, also known as Mars 1960A.

As the table above shows, the voyage was unsuccessful. The spacecraft made it 120 km into the air, but its third-stage pumps didn’t generate enough momentum for it to stay in Earth’s orbit.

For the next few years, several more unsuccessful Mars missions were attempted by the USSR and then NASA. Then, in 1964, history was made when NASA launched the Mariner 4 and completed the first-ever successful trip to Mars.

The Mariner 4 didn’t actually land on the planet, but the spacecraft flew by Mars and was able to capture photos, which gave us an up-close glimpse at the planet’s rocky surface.

Then on July 20, 1976, NASA made history again when its spacecraft called Viking 1 touched down on Mars’ surface, making it the first space agency to complete a successful Mars landing. Viking 1 captured panoramic images of the planet’s terrain, and also enabled scientists to monitor the planet’s weather.

Vacation to Mars, Anyone?

To date, all Mars landings have been done without crews, but NASA is planning to send humans to Mars by the late 2030s.

And it’s not just government agencies that are planning missions to Mars—a number of private companies are getting involved, too. Elon Musk’s aerospace company SpaceX has a long-term plan to build an entire city on Mars.

Two other aerospace startups, Impulse and Relativity, also announced an unmanned joint mission to Mars in July 2022, with hopes it could be ready as soon as 2024.

As more players are added to the mix, the pressure is on to be the first company or agency to truly make it to Mars. If (or when) we reach that point, what’s next is anyone’s guess.

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Thematic Investing: 3 Key Trends in Cybersecurity

Cyberattacks are becoming more frequent and sophisticated. Here’s what investors need to know about the future of cybersecurity.

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Global X Cybersecurity ETF

The following content is sponsored by Global X ETFs
Global X Cybersecurity ETF

Thematic Investing: 3 Key Trends in Cybersecurity

In 2020, the global cost of cybercrime was estimated to be around $945 billion, according to McAfee.

It’s likely even higher today, as multiple sources have recorded an increase in the frequency and sophistication of cyberattacks during the pandemic.

In this infographic from Global X ETFs, we highlight three major trends that are shaping the future of the cybersecurity industry that investors need to know.

Trend 1: Increasing Costs

Research from IBM determined that the average data breach cost businesses $4.2 million in 2021, up from $3.6 million in 2017. The following table breaks this figure into four components:

Cost ComponentValue ($)
Cost of lost business$1.6M
Detection and escalation$1.2M
Post breach response$1.1M
Notification$0.3M
Total$4.2M

The greatest cost of a data breach is lost business, which results from system downtimes, reputational losses, and lost customers. Second is detection and escalation, including investigative activities, audit services, and communications to stakeholders.

Post breach response includes costs such as legal expenditures, issuing new accounts or credit cards (in the case of financial institutions), and other monitoring services. Lastly, notification refers to the cost of notifying regulators, stakeholders, and other third parties.

To stay ahead of these rising costs, businesses are placing more emphasis on cybersecurity. For example, Microsoft announced in September 2021 that it would quadruple its cybersecurity investments to $20 billion over the next five years.

Trend 2: Remote Work Opens New Vulnerabilities

According to IBM, companies that rely more on remote work experience greater losses from data breaches. For companies where 81 to 100% of employees were remote, the average cost of a data breach was $5.5 million (2021). This dropped to $3.7 million for companies that had under 10% of employees working from home.

A major reason for this gap is that work-from-home setups are typically less secure. Phishing attacks surged in 2021, taking advantage of the fact that many employees access corporate systems through their personal devices.

Type of AttackNumber of attacks in 2020Number of attacks in 2021Growth (%)
Spam phishing1.5M10.1M+573%
Credential phishing5.5M6.2M+13%

As detected by Trend Micro’s Cloud App Security.

Spam phishing refers to “fake” emails that trick users by impersonating company management. They can include malicious links that download ransomware onto the users device. Credential phishing is similar in concept, though the goal is to steal a person’s account credentials.

A tactic you may have seen before is the Amazon scam, where senders impersonate Amazon and convince users to update their payment methods. This strategy could also be used to gain access to a company’s internal systems.

Trend 3: AI Can Reduce the Cost of a Data Breach

AI-based cybersecurity can detect and respond to cyberattacks without any human intervention. When fully deployed, IBM measured a 20% reduction in the time it takes to identify and contain a breach. It also resulted in cost savings upwards of 60%.

A prominent user of AI-based cybersecurity is Google, which uses machine learning to detect phishing attacks within Gmail.

Machine learning helps Gmail block spam and phishing messages from showing up in your inbox with over 99.9% accuracy. This is huge, given that 50-70% of messages that Gmail receives are spam.
– Andy Wen, Google

As cybercrime escalates, Acumen Research and Consulting believes the market for AI-based security solutions will reach $134 billion by 2030, up from $15 billion in 2021.

Introducing the Global X Cybersecurity ETF

The Global X Cybersecurity ETF (Ticker: BUG) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index. See below for industry and country-level breakdowns, as of June 2022.

Sector (By security type)Weight
Cloud28.0%
Network25.1%
Identity17.7%
Internet15.0%
Endpoint12.8%
CountryWeight
🇺🇸 U.S.71.6%
🇮🇱 Israel13.2%
🇬🇧 UK8.2%
🇯🇵 Japan5.5%
🇰🇷 South Korea0.9%
🇨🇦 Canada0.6%

Totals may not equal 100% due to rounding.

Investors can use this passively managed solution to gain exposure to the rising adoption of cybersecurity technologies.

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