Meta seeks financing and launches a loan for the first time

This is the first loan in the history of Meta (formerly Facebook).

For the first time in its history, Meta (ex-Facebook) will issue bonds. A palace revolution in a group free of any long-term debt. In the documents filed by the group with the American stock market policeman (SEC), Meta indicates that the funds will be used to finance capital expenditures, share buybacks, 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.”, mentioned Mark Zuckerberg, boss and founder of Meta, on the sidelines of the publication of the group’s quarterly results. Over the past three months, the group has recorded a 36% drop in net profit to $6.7 billion. The group, which also owns WhatsApp and Instagram, is suffering from both the downturn in the advertising market and growing competition from TikTok. Since February, the share price has halved to $167, wiping out some $400 billion in market capitalization. Share buybacks could support the price

Investment needs

Meta also faces significant investment needs, particularly related to its efforts to develop its metaverse. However, this new activity is, for the moment, anything but lucrative. The tech giant wants to spend $10 billion a year on it, but doesn’t expect to see significant revenue from it for years.

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