Facebook’s Third Act
If it works, the social-networking giant will become more private and more powerful
The first big overhaul for Facebook came in 2012–14. Internet users were carrying out ever more tasks on smartphones rather than desktop or laptop computers. Mark Zuckerberg opted to follow them, concentrating on Facebook’s mobile app ahead of its website, and buying up two fast-growing communication apps, WhatsApp and Instagram. It worked. Facebook increased its market valuation from around $60bn at the end of 2012 to — for a brief period in 2018 — more than $600bn.
On March 6th Mr Zuckerberg announced Facebook’s next pivot. As well as its existing moneymaking enterprise, selling targeted ads on its public social networks, it is building a “privacy-focused platform” around WhatsApp, Instagram and Messenger. The apps will be integrated, he said, and messages sent through them encrypted end-to-end, so that even Facebook cannot read them. While it was not made explicit, it is clear what the business model will be. Mr Zuckerberg wants all manner of businesses to use its messaging networks to provide services and accept payments. Facebook will take a cut.
A big shift was overdue at Facebook given the privacy and political scandals that have battered the firm. Even Mr Zuckerberg, who often appears incapable of seeing the…
