No News is Good News? Meta Loses Interest in Partnership With US News Publishers

CC BY 2.0 / Jon S / Newspapers
Newspapers - Sputnik International, 1920, 29.07.2022
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Previously, Meta reportedly spend $10 million on a news partnership with The Wall Street Journal, $20 million on a news partnership with The New York Times, and $3 million on a deal with CNN.
Social media giant Meta* has apparently decided that its partnership with US news publishers no longer suits the company’s interests, Axios reports.
According to the media outlet, Facebook* brokered a number of three-year deals worth roughly $105 million with publishers in 2019, with the money apparently being spent on additional content for Facebook’s News Tab, while media companies retained the ability to publish their content on the platform at will.
Facebook’s parent company Meta thus spent $10 million and $20 million on news partnerships with The Wall Street Journal and The New York Times respectively, as well as $3 million on a deal with CNN.
Recently, however, Meta apparently decided to reassess its priorities, with the company’s VP of media partnerships Campbell Brown reportedly telling staffers they are shifting resources from news products to other, more creative initiatives.
"A lot has changed since we signed deals three years ago to test bringing additional news links to Facebook News in the US,” a spokesperson for Facebook told Axios. “Most people do not come to Facebook for news, and as a business it doesn't make sense to over-invest in areas that don't align with user preferences."
Although Meta won’t be renewing funding for about 50 publishers for their content, “hundreds of news publishers” should still be able to have their content included in Facebook’s News Tab, the media outlet adds.
In this illustration photo taken in Los Angeles on October 28, 2021, a person watches on a smartphone Facebook CEO Mark Zuckerberg unveil the META logo. - Sputnik International, 1920, 27.05.2022
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Meanwhile, Meta sales dipped amid rampant inflation and talk of recession in the United States, the first such decrease in the company's history.
In its second quarter report, the company revealed that its revenue had dropped from $29 billion during the same period in 2021 to $28.8 billion this year.
*Activity of Meta (Facebook and Instagram) is banned in Russia as extremist
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