Facebook's rebranding to Meta Platforms (NASDAQ:FB) has opened up a world of potential partnerships as the company explores its broad-ranging vision to build up the metaverse. In this segment of "Backstage Pass", recorded on Nov. 1, Fool contributors Rachel Warren and Toby Bordelon discuss one such potential partnership that's hit the headlines lately.
Rachel Warren: I'm going to pause for a moment and we have some questions come in in the Slido. I don't know if either of you has had a chance to look at those. Let me see here.
DrazFool says, "Any thoughts on Matterport (NASDAQ:MTTR) and its partnering with Facebook?" Have either of you followed the rumors about that since Facebook announced expanding into the metaverse?
Toby Bordelon: I think it makes sense. Matterport, they've been mainly operating in the real estate industry right now. But if you've seen the 3D renderings of homes whatnot, that's some of what they do.
They have technology that allows you to take a physical space and turn it into a virtual-looking space, because of obvious implications in real estate. But I think it makes sense and if they spoke and move forward with this they would want to partner with a company like Matterport and how to use their technology to do what they want to do.
To create the metaverse, to make these virtual spaces, these virtual comments basically we're going to meet in. You wonder, if you're thinking out, you wonder, is this a precursor to a merger and acquisition of Matterport? Maybe, I don't know they will go in that direction and I don't even know if they could right now, but it doesn't really surprise me at all.
If like one company come out and say this is where we're going to do and lay out the Facebook vision. I would think that you'd want to partner with Matterport at least in the early stages. It's not a surprise just to see that, that's really their business, that creation of the digital environment. We'll see how that works out.
Warren: It's interesting, I was looking, I think, Matterport and Facebook AI Research, they collaborated earlier in the year, it looks like. I think there's been a lot of speculation that Matterport could play a big role in Facebook's expansion in the metaverse. I agree, maybe, perhaps an acquisition could be interesting.
Bordelon: They're going to have to a lot of partners, that sort of thing. It's not just going to be one.
The scope of their vision is pretty large. You may think this is the first of many that's going to happen. I think you're going to see as the space grows more, you're going to see a lot of these companies collaborate with each other. They have different expertise in different areas.
No one wants to spend a massive amount of capital, totally reinventing something that someone else is already doing. It's easier to say, let's do a partnership and you can supply this part of it at least to get us off ground in the early stages when we experiment and see what's going on here.
Warren: That makes a lot of sense. Hopefully, that answers your question, DrazFool.