Facebook, Inc. FB in order to fire up its Internet connectivity plans has roped in Kevin Lo, the former General Manager of Alphabet’s GOOGL Google Fiber division.
Lo will be joining the social media giant as the director of infrastructure connectivity and investments. Per media reports, Lo will be working to enhance Facebook’s external partnerships for boosting global connectivity. This has led to speculations that Lo will take roles in Facebook projects like Terragraph, a connectivity program to help bring Internet to populated urban regions. In addition, Lo might also become an important member of the trans-Atlantic data cable alliance that has been formed between Facebook and Microsoft MSFT.
Facebook has however clearly stated that Lo will not be working on the company’s controversial ‘Free Basics’ initiative. In addition, the company has also hinted that it has no plans to challenge Google as an Internet service provider. Last year, the company had however mentioned that it is planning to tie up with existing providers, in order to boost its efforts. Lo, with all his experience, does seem a good choice to lead such partnerships.
We believe that Lo would likely be an important addition to Facebook for advancing its aim of global connectivity. He was one of the co-founders of Google Fiber and managed key aspects of the project from 2010 till last year when he left Google.
The two tech giants, Facebook and Google, have been battling in the Internet connectivity space for quite a while. Though on the technological front, the companies are leaders in different domains, there is nonetheless some overlapping. For instance, Facebook’s Aquila drone is quite similar to Google‘s Project Loon. The only difference is that Google uses high-flying balloons instead of drones to beam Internet connectivity.
With growth in developed markets slowing down, these tech giants are looking to improve connectivity, which in turn would allow them to boost their user base. After all, a vast portion of the global population still remains to be connected.
At present, Facebook carries a Zacks Rank #1 (Strong Buy). Another stock worth consideration is NetEase, Inc. NTES carrying the same Zacks Rank as Facebook.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment