Sandberg’s departure may not be a significant setback for Facebook parent Meta

Sheryl Sandberg’s departure from Meta Platforms Inc comes at a critical time for Facebook’s parent company, as it pivots to “metaverse” in the face of dwindling ad revenue, though Wall Street analysts predict her departure will be minor.

In her 14 years as Facebook’s second-in-command to founder and CEO Mark Zuckerberg, Sandberg helped turn the firm from a buzzy startup to a technology titan, helping to raise its ad income from $272 million to over $100 billion.

As the social-media network became mired in a series of issues, including a data scandal involving British business Cambridge Analytica, she was also the company’s face in dealing with authorities in Washington.

“Meta is a more mature business with set processes as Sandberg moves on,” JMP Securities analyst Andrew Boone said.

“While we acknowledge Sandberg’s instrumental role in building Meta’s advertising business, the company now has the infrastructure and processes in place to weather most departures, including Sandberg’s.”

Sandberg, a Harvard graduate, joined Facebook from Google in 2008 after serving as the US Treasury Department’s chief of staff under former President Bill Clinton.

When Sandberg steps down, Javier Olivan, the company’s current chief growth officer, will take over as COO.

“I’m more concerned about the ultimate outcome of the metaverse and the impact of earnings over the next handful of years than I would be about who is sitting in the role of COO,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

Former British deputy prime minister Nick Clegg, who was appointed in 2018 to lead the company’s global policy unit, could have a bigger role in negotiating with regulators, according to MKM Partners analyst Rohit Kulkarni.