This is the first loan in the history of Meta (formerly Facebook).
For the first time in its history, Meta (ex-Facebook) issues bonds. A palace revolution in a group free of any long-term debt. In the documents presented by the group with the American stock exchange police (SEC), Meta indicates that the funds will be used to finance. “ capital expenditure, share purchases, acquisitions“. According to the Bloomberg agency, Meta hopes to obtain in this operation between 8 and 10 billion dollars, divided between four separate loans. The duration of these loans varies between 5 and 40 years.
“ I would say the situation looks worse than three months ago.”, said Mark Zuckerberg, CEO and founder of Meta, on the sidelines of the publication of the group’s quarterly results. In the last three months, the group recorded a 36% drop in net profit to $6.7 billion. The group, which also owns WhatsApp and Instagram, is suffering from both the decline in the advertising market and the growing competition from TikTok. Since February, the stock price has halved to $167, wiping out about $400 billion in market capitalization. Buying shares could support the price
Meta also faces significant investment needs, particularly in relation to its efforts to develop its metaverse. However, this new business is, for now, anything but lucrative. The tech giant wants to spend $10 billion a year, but doesn’t expect to see significant revenue from it for years.