Meta (formerly Facebook) will issue bonds for the first time in its history. House revolution in any long term debt free group. In documents submitted by the group to the US Securities and Exchange Commission (SEC), Meta states that the funds will be used to finance: “ capital expenditures, share buybacks, acquisitions“. According to the Bloomberg agency, Meta hopes to receive between 8 and 10 billion dollars during this operation, divided between four separate loans. The tenure of these loans varies from 5 to 40 years.
“ I would say that the situation is worse than three months ago.Mark Zuckerberg, the head and founder of “Meta”, stated during the publication of the group’s quarterly results. Over the past three months, the group reported a 36% drop in net profit to $6.7 billion. The group, which also owns WhatsApp and Instagram, is suffering from increased competition in both the advertising market and from TikTok. The stock has halved to $167 since February, wiping out about $400 billion in market capitalization. Share buybacks can support the price
Investment needs
Meta also faces significant investment needs, particularly related to its metaverse development efforts. However, this new venture is, at this point, anything but profitable. The tech giant wants to spend $10 billion a year on it, but doesn’t expect to see significant revenue from it for years.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.