Meta Platforms Inc. said that it has raised 10 billion dollars its first-ever bond offering, as Meta looks to fund share buybacks and investments to revamp the business. This offering will help Meta, which is the only one among large technology companies without debt, to build a more traditional balance sheet and also funding some expensive initiatives like metaverse virtual reality.
The other technology giants like Intel Corp and Apple Inc. also issued bonds recently, with raising 5.4 billion dollars and 6 billion dollars, respectively. Meta has posted a gloomy forecast, and recorded its first-ever quarterly decrease in revenue, with competitive pressures and recession fears weighing on Meta’s digital advertisements sales.
This announcement came at a time when Meta is making large investments to fund its virtual reality projects, and Meta did not disclose the size of the offering, but also said it will proceed for capital expenditures, acquisitions, share repurchases, and investments.
This offering might also be a rare opportunity to do so relatively cheap in the current market environment. The corporate bonds have also rebounded in the past month after a rout earlier 2022, as the investors are hoping the fight of the US Federal Reserves against inflation through rapid rate increases to have some impact.
Ram is a leading news contributor for IndustryWatch24 and specialises in writing about technology. His enthusiasm for the most recent technological advancements, such as Bitcoin and AI technology, among others, is evident in the most recent industry coverage he offers. He currently presents his analysis of popular business and technological fields, which gives his writing a present and unique perspective.
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