Meta vs. Google – Spurned proposal

Meta jilts Google for good reasons.

• Meta’s decision not to partner with Google to create a Metaverse platform makes complete sense confirming my view that Meta Platforms is determined to ensure that its business is never again hostage to a foreign platform.
• The Information is reporting that Google approached Meta to jointly create a platform for the Metaverse and that Meta decided not to join Google.
• This makes complete sense and given that Meta is far ahead of Google in addressing the Metaverse, there was far more in this partnership for Google than there was for Meta.
• At a very high level, a partnership makes sense as Meta’s Metaverse is based on a customised spin of Android which is owned by Google and would give Meta better vertical access to all aspects of its platform.
• However, I think that Meta will not regret this decision as:
  • First, Control. Meta Platforms has suffered at the hands of Apple and Google as its key revenue-generating assets depend on iOS and Android to make money.
  • Every time a decision has been taken by Apple or Google that adversely impacts Meta, it has had to scramble to contain the damage.
  • The most prominent example of this was when Apple required apps to ask users if they wanted to be tracked hamstringing a major method by which Meta made money.
  • Meta has found a way around this, but it has brought home with crystal clarity just how dangerous this kind of dependence can be and Meta is determined that there will be no repeat of this.
  • This is why it is designing its version of the Metaverse from the ground up and why it has created foundation models and then let the open-source community use them.
  • Letting Google partner on the platform cedes an element of control to Google that Meta would obviously like to retain.
  • Second, Leading position. Meta Platforms is the leader in the Metaverse by a substantial margin and letting Google into the platform gives a competitor a leg up.
  • Google will have to compete in the Metaverse eventually should it begin to take off, and this would help the Google ecosystem compete against Meta’s ecosystem in the Metaverse.
  • Third, win-lose. I think that Google would be much better off with this partnership while Meta Platforms would be a net loser.
  • This is because Google does not have much to offer Meta.
  • Android is already in the open source and if things go sour, Meta can carry on developing on Android although it would have to take over all aspects of Android development not just the pieces that it currently customises.
  • Google has billions of users that Meta could access but I suspect that the vast majority of these and all of the valuable ones already have a relationship with at least one Meta property.
  • Hence, the benefit to Meta of getting access to Google’s users is likely to be worth very little meaning that there is not much here for Meta.
• Hence, I think that this was the right decision for Meta as Google is miles behind when it comes to the Metaverse and there is very little benefit to Meta by giving it a leg up.
• That being said if I had to choose between Google and Meta, I would take a position in Google.
• This is because Google is already cheaper than all of its peers and is a leader in AI no matter how many times it shoots itself in the foot.
• This tendency has been particularly strong when it comes to its AI products and the market is again panicking that it will lose market share in search to Open AI or one of the other upstarts.
• I see no sign of this as Google’s AI is just as good as anyone else’s but Google remains awful at public relations.
• This has ensured that it has received all the negative attention despite the fact that everyone else’s AI suffers from the same or similar biases that have caused the recent bad press.
• The cheaper it gets, the more I want to own it.