Facebook¡¯s Parent Company Meta Raises $10 Billion In Its First Ever Bond Offering To Revamp Business
Meta Platforms looks to fund share buybacks and investments to revamp its business through this $10 billion fund raise.
Facebook-parent Meta Platforms said yesterday that it had raised $10 billion in its first-ever bond offering, as it looks to fund share buybacks and investments to revamp its business.
The offering would help Meta, the only company amongst technology giants which is without debt on its books, to build a more traditional balance sheet and fund some expensive initiatives, such as its metaverse virtual reality, as per Reuters report.
Other tech giants such as Apple and Intel Corp had also issued bonds recently, raising $5.5 billion and $6 billion, respectively.
Reuters
Last month, Meta had posted a gloomy forecast and recorded its first-ever quarterly drop in revenue, with recession fears and competitive pressures weighing on its digital ads sales.
And now, Meta¡¯s first ever corporate bond offering that has raised $10 billion, aims to help in revamping the business as the company looks to fund share buybacks and investments.
For the uninitiated, corporate bonds are a form of debt financing that act as a major source of capital for many businesses, besides options like equity, bank loans, and lines of credit. As per the US¡¯ SEC (Securities and Exchange Commission), investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company (in this case Meta) makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures.
New WhatsApp Features Announced By Meta
Yesterday, Meta announced new privacy features for WhatsApp users. WhatsApp users will be able to leave group chats silently, control who can see their online status and even block screenshots on View Once messages.
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Meta CEO Mark Zuckerberg said this would help keep WhatsApp messaging "as private and secure as face-to-face conversations".
WhatsApp will reportedly begin rolling out the features this month, highlighting them in a global campaign, starting in the UK and India, as per various media reports.
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