Science & Technology
Facebook owner Meta to lift veil off its metaverse business
Since October, Facebook has renamed the company, articulated a vision of the internet where people can digitally connect through virtual-reality avatars or teleport to see places like ancient Rome, and helped trigger the metaverse investment craze.
When the company, now Meta Platforms Inc, reports fourth-quarter results on Wednesday, investors will get a new window into the financial impact of CEO Mark Zuckerberg’s current passion.
Meta plans to break out the results of its augmented and virtual-reality hardware unit, Reality Labs, for the first time, an investment the company previously warned would cause a $10 billion hit to 2021 profit and would not be profitable “any time in the near future.”
The company is hiring engineers and buying up multiple virtual reality gaming studios to build toward the metaverse, which is a broad futuristic idea of shared virtual realms that can be accessed via different devices and which Zuckerberg is betting will be the successor to the mobile internet.
Analysts said they would be keen to see indicators about the Reality Labs division’s profitability, how long it might be a drag on the advertising side, and evidence around the strength of VR headset sales.
“It’s going to be huge for me as an analyst, not having to surgically dig through Facebook earnings … and just see a lens into the Reality Labs,” said VR market analyst Stephanie Llamas of VoxPop.
Meta has said it expects non-advertising revenue to be down year-over-year in the fourth quarter as it compares unfavorably with the “strong launch” of its VR Quest 2 headsets during the previous year’s holiday shopping season.
The company has not released sales numbers for Quest headsets, but a July recall notice for the Quest 2’s facial foam liners said it affected about 4 million units in the United States. In a sign of strong sales for the headsets during the recent holiday period, its Oculus app hit the top spot on the U.S. App Store for free iPhone apps on Christmas Day.
‘SIGNIFICANT UNCERTAINTY’
Front-of-mind for investors, though, will be how Meta’s core digital advertising business is faring, after the tech giant said in October it faced “significant uncertainty” in the fourth quarter.
The company, which has the second-largest digital ad platform in the world after Alphabet Inc’s Google, warned it could face continued hits from Apple Inc’s privacy changes which have made it harder for brands to target and measure their ads on Meta’s social media services Facebook and Instagram. Analysts said Meta had set the bar low for its coming earnings, but questions remained about these effects and about issues related to the COVID-19 pandemic.
“The Apple tracking change clearly had a negative impact on Facebook in the September quarter,” said Evercore ISI analyst Mark Mahaney. “The question is, were they able to further mitigate that risk … or did it become bigger?”
Pedro Palandrani, a research analyst at Global X, said the metaverse was the “long-term story” but in the near term investors would look for how Meta navigates Apple’s policy as well as e-commerce updates and ways to monetize messaging or features like its short video offering, Reels.
Meta, which reported 2020 revenue of about $86 billion, has yet to explain in detail how it will make money in the metaverse. In November, it pointed to potential opportunities for brands, from immersive shops to running paid mixed-reality events. The company has invited a group of ad execs to discuss its brand change and its plans for the metaverse at a virtual roundtable next month.
Meta is expected to report revenue of $33.38 billion, according to Wall Street estimates, up 18.9% year over year, and is expected to post quarterly earnings per share of $3.84, a slight decline. The company has said it expects total 2021 expenses to come in at $70 billion-$71 billion and full-year 2022 expenses to reach $91 billion-$97 billion.
Science & Technology
Trump administration set to receive $10 billion fee for brokering TikTok deal, WSJ reports
Vice President JD Vance had in September said that the new U.S. company will be valued at around $14 billion.
President Donald Trump’s administration is set to receive a roughly $10 billion fee from investors in the recently completed deal to take control of TikTok’s U.S. business, the Wall Street Journal reported on Friday, citing people familiar with the matter.
TikTok’s Chinese owner, ByteDance, in January finalized a deal to establish a majority American-owned joint venture that will secure U.S. data, to avoid a U.S. ban on the short video app used by over 200 million Americans.
TikTok USDS Joint Venture LLC will secure U.S. user data, apps and algorithms through data privacy and cybersecurity measures. It disclosed few details about the divestiture.
Vice President JD Vance had in September said that the new U.S. company will be valued at around $14 billion.
The payment is part of the agreement through which investors friendly with the administration gained control of TikTok’s U.S. operations from ByteDance, WSJ said. It is on top of the investments already made to establish a new entity to operate the app in the U.S.
Investors Oracle (ORCL.N), Silver Lake, Abu Dhabi’s MGX and other backers paid about $2.5 billion to the Treasury Department when the deal closed and are to make a number of subsequent payments until the total reaches $10 billion, per the Journal.
TikTok and the White House did not immediately respond to Reuters requests for comment.
Officials from the administration have said the fee is justified, citing Trump’s role in rescuing TikTok’s U.S. operations and guiding negotiations with China to complete the deal while tackling lawmakers’ concerns over national security, according to WSJ.
Earlier this month, Trump and U.S. Attorney General Pam Bondi were sued by retail investors in two social media rivals of TikTok seeking to reverse the U.S. president’s approval of a deal by the company’s Chinese owner ByteDance to form a majority American-owned joint venture.
Science & Technology
NASA eyes March 6 launch of astronaut moon mission
Artemis program managers completed a comprehensive simulation of the Space Launch System’s launch-day countdown, but said remaining work could still push the launch date further into March.
NASA officials said the agency was targeting March 6 for the launch of four astronauts around the moon and back as part of its Artemis II mission after overcoming rocket-fueling snags in a second key launch rehearsal this week, but cautioned that remaining prep work could warrant more time.
The U.S. space agency on Thursday night capped a nearly 50-hour rehearsal of the Artemis II launch countdown, fueling the rocket with some 730,000 gallons of propellant without running into the pesky hydrogen leaks that hobbled an initial rehearsal last month, officials said during a news conference.
Artemis program managers were elated that the Wet Dress Rehearsal, a comprehensive simulation of the Space Launch System’s launch-day countdown, went smoothly, but said remaining work ahead could still push the launch date further into NASA’s March launch window.
“I felt like last night was a big step in us earning our right to fly. So, felt really good, very proud of the team,” said NASA launch director Charlie Blackwell-Thompson.
Remaining work includes testing the rocket’s flight termination system and conducting a sweeping Flight Readiness Review, a day-long meeting of agency management during which they effectively double-check all rocket hardware and mission procedures before liftoff. – Reuters
Science & Technology
Musk’s Starlink faces high-profile security test in Iran crackdown
Starlink, which is harder for Iran to tamper with than cable and cellphone tower networks, has become crucial for documenting events on the ground.
Iran’s crackdown on dissidents is shaping up as one of the toughest security tests yet for Elon Musk’s Starlink, which has served as a lifeline against state-imposed internet blackouts since its deployment during the war in Ukraine, Reuters reported.
SpaceX, which owns Starlink, made the satellite service free for Iranians this week, placing Musk’s space company at the center of another geopolitical hot spot and pitting a team of U.S.-based engineers against a regional power armed with satellite jammers and signal-spoofing tactics, according to activists, analysts and researchers.
How SpaceX withstands Iranian attacks on its most lucrative line of business is expected to be closely watched by U.S. military forces and intelligence agencies that use Starlink and its military-grade variant Starshield, as well as China, whose own nascent satellite internet constellations are set to rival Starlink in the coming years. With SpaceX weighing a public listing this year, the situation in Iran also represents a high-profile showcase for Starlink to investors.
“We’re in this weird early part of the history of space-delivered communications where SpaceX is the only true provider at this scale,” said John Plumb, the former Pentagon space policy chief under President Joe Biden.
“And these repressive regimes think they can still turn off communications, but I think the day is coming where that’s just not possible,” he said.
Victoria Samson, chief director of space security and stability at the think tank Secure World Foundation, said Russia, which has deployed an array of technologies to counter Starlink in Ukraine, might be keen to examine the effectiveness of Iran’s Starlink interference.
“I think a lot of actors are watching how Starlink fares here,” she said.
Thousands of people protesting Iran’s clerical rule are reported to have been killed in the past week, while Tehran’s order to restrict communications makes it difficult to discern the full extent of its violent crackdown on dissent.
Starlink, which is harder for Iran to tamper with than cable and cellphone tower networks, has become crucial for documenting events on the ground, read the report.
Raha Bahreini, an Iran researcher at Amnesty International, said they had verified dozens of videos from Iran, including footage of protesters killed or injured by Iranian forces, and believe that almost all of them came from people who had access to Starlink. She added, however, that the ongoing communications restrictions have impeded human rights organizations’ communications with people in Iran in efforts to assess the scale of the violence.
Starlink is banned in Iran, yet tens of thousands of terminals may have been smuggled into the country, although it remains unclear how many are in use, according to Holistic Resilience, a U.S. nonprofit that has helped deliver Starlink terminals to Iranians and says it is working with SpaceX to monitor what it describes as Iranian attempts to jam the system.
Consumer Starlink terminals are rectangular antenna dishes that come in two sizes – one roughly the size of a pizza box and a smaller “mobile” one the size of a laptop.
SpaceX did not respond to requests for comment.
The Iranian mission to the United Nations in New York declined to comment on Thursday in response to Reuters’ questions.
Iranian Foreign Minister Abbas Araqchi, speaking to Al Jazeera TV on Monday, said the internet had been cut off “after we confronted terrorist operations and realized orders were coming from outside the country.”
Starlink, the first massive internet-from-space constellation of its kind, has emerged as a crucial tool for communications in wartime and remote areas. The network, which drove SpaceX’s $15 billion revenue in 2024, has expanded the geopolitical power of Musk, who in 2022 asserted control over how and where it was being used by Ukrainian troops fighting back Russian forces.
Roughly 10,000 low-orbiting Starlink satellites zipping above user terminals at an orbital velocity of some 17,000 miles per hour (27,360 kph) make its signals much harder to locate and disrupt than traditional satellite systems designed with a larger, single satellite fixed over a given territory.
Iran is likely using satellite jammers to disrupt the Starlink signals, according to Holistic Resilience and other specialists. Iran also appears to be engaging in so-called spoofing, or broadcasting fake GPS signals to confuse and disable Starlink terminals, according to Nariman Gharib, an Iranian opposition activist and independent cyber espionage investigator based in Britain, Reuters reported.
The GPS spoofing wreaks havoc on a Starlink terminal’s connection and slows internet speeds, said Gharib, who analyzed data from a terminal inside Iran.
“You might be able to send text messages, but forget about video calls,” he said.
Though Starlink is not licensed to operate in Iran, Musk has repeatedly confirmed its presence on his social media platform X, spurring a yearslong effort by the Iranian government to counter the service. Amid protests over the death of Mahsa Amini in December 2022, Musk posted that nearly 100 Starlink terminals were active in the country.
Following the 12-day war between Iran and Israel in June, Iran’s parliament passed a law banning the use of Starlink, introducing severe penalties for those who use or distribute the unlicensed technology, according to Iranian state media.
Iran has also pursued diplomatic channels, urging a panel at the United Nations’ International Telecommunication Union last year to force the United States and Norway — where Starlink is internationally registered — to block the service.
At a July meeting, Iran told the board that Starlink’s use in the country is illegal and said an “invading country” had deployed its terminals on drones during a recent attack.
Iran told the board in November that it was struggling to locate and disable the terminals itself.
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