Meta Reportedly Issuing $10 Billion in Bonds to Invest in Its Metaverse Products and Other Initiatives

0 2

meta

Meta, the social media company, is planning to issue its first set of bonds to finance new investments and operations, according to reports. The company will be selling $10 billion in debt, to maintain a healthy cash flow and fund buybacks, per statements of two people with reported knowledge of the deal.

Meta to Issue Bonds to Finance New Investments

Meta, one of the first companies that pivoted to the metaverse as part of its main business model, is set to issue debt in order to continue to fund part of its operations and to maintain a healthy free cash flow. According to reports coming from people close to the deal, the company will be issuing $10 billion in bonds as part of the first debt offering of this kind for the tech giant.

The operation, which was set to happen Thursday, has received a big response, with investors offering $30 billion to take advantage of this move. The bonds will have different maturities, going from five years to 40 years, with the majority of the demand being directed towards the latter.

Per source statements, the offering has been in the works for the last two months, with Meta deciding to launch it after releasing its latest earnings report in July. The company obtained satisfactory ratings from different agencies, getting an ‘A1’ rating from Moody’s and an ‘AA- rating’ and a ‘stable’ outlook from S&P.


An Expensive Metaverse Move

The issuance of this bond has to do with the shrinkage of the free cash flow that the company has experienced during the last year. Meta had $4.45 billion in free cash flow, compared to the $8.51 billion the company had a year ago. Sources indicated that the bond offering will have the objective of giving the company more breathing room to keep funding part of its operations, including its metaverse initiatives.

Meta’s metaverse push is costing the company a lot of funds in research and development. In its latest earnings call, the company reported that its metaverse unit, Reality Labs, had reached sales of more than $400 million, but registered losses of more than $2.8 billion during Q2 2022. Predictions are not good either, with the company acknowledging that Reality Labs would continue to lose money during Q3.

Meta has also made some moves on the sales side of the equation, raising the price of its flagship VR headset, the Quest 2, by $100 “in order to continue investing in moving the VR industry forward for the long term.”

What do you think about Meta’s $10 billion bond issuance? Tell us in the comments section below

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 24,455.55
ethereum
Ethereum (ETH) $ 1,983.54
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 325.50
cardano
Cardano (ADA) $ 0.561415
xrp
XRP (XRP) $ 0.379900
binance-usd
Binance USD (BUSD) $ 1.00
solana
Solana (SOL) $ 46.75
polkadot
Polkadot (DOT) $ 9.40
dogecoin
Dogecoin (DOGE) $ 0.073860
avalanche-2
Avalanche (AVAX) $ 29.19
staked-ether
Lido Staked Ether (STETH) $ 1,931.19
matic-network
Polygon (MATIC) $ 1.01
shiba-inu
Shiba Inu (SHIB) $ 0.000013
dai
Dai (DAI) $ 1.00
tron
TRON (TRX) $ 0.070042
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 24,444.55
ethereum-classic
Ethereum Classic (ETC) $ 44.01
okb
OKB (OKB) $ 22.45
leo-token
LEO Token (LEO) $ 4.88
litecoin
Litecoin (LTC) $ 63.60
near
NEAR Protocol (NEAR) $ 5.91
chainlink
Chainlink (LINK) $ 9.17
ftx-token
FTX (FTT) $ 31.37
uniswap
Uniswap (UNI) $ 9.01
crypto-com-chain
Cronos (CRO) $ 0.154581
cosmos
Cosmos Hub (ATOM) $ 11.96
stellar
Stellar (XLM) $ 0.126720
flow
Flow (FLOW) $ 2.96
monero
Monero (XMR) $ 166.60
bitcoin-cash
Bitcoin Cash (BCH) $ 143.68
algorand
Algorand (ALGO) $ 0.370281
vechain
VeChain (VET) $ 0.032975
filecoin
Filecoin (FIL) $ 8.40
internet-computer
Internet Computer (ICP) $ 8.22
apecoin
ApeCoin (APE) $ 6.83
decentraland
Decentraland (MANA) $ 1.07
chain-2
Chain (XCN) $ 0.087294
hedera-hashgraph
Hedera (HBAR) $ 0.081991
axie-infinity
Axie Infinity (AXS) $ 19.62
the-sandbox
The Sandbox (SAND) $ 1.34
tezos
Tezos (XTZ) $ 1.91
quant-network
Quant (QNT) $ 127.57
lido-dao
Lido DAO (LDO) $ 2.94
celsius-degree-token
Celsius Network (CEL) $ 3.76
theta-token
Theta Network (THETA) $ 1.59
aave
Aave (AAVE) $ 110.49
elrond-erd-2
Elrond (EGLD) $ 65.21
frax
Frax (FRAX) $ 1.00
eos
EOS (EOS) $ 1.35
true-usd
TrueUSD (TUSD) $ 1.00
bitcoin-sv
Bitcoin SV (BSV) $ 63.77
helium
Helium (HNT) $ 8.57
the-graph
The Graph (GRT) $ 0.144391
kucoin-shares
KuCoin (KCS) $ 10.73
fantom
Fantom (FTM) $ 0.401698
compound-usd-coin
cUSDC (CUSDC) $ 0.022696
iota
IOTA (MIOTA) $ 0.359550
compound-ether
cETH (CETH) $ 39.64
maker
Maker (MKR) $ 1,070.42
zcash
Zcash (ZEC) $ 75.84
bittorrent
BitTorrent (BTT) $ 0.000001
huobi-btc
Huobi BTC (HBTC) $ 24,303.51
havven
Synthetix Network (SNX) $ 4.01
ecash
eCash (XEC) $ 0.000048
klay-token
Klaytn (KLAY) $ 0.305835
thorchain
THORChain (RUNE) $ 2.91
paxos-standard
Pax Dollar (USDP) $ 1.00
chiliz
Chiliz (CHZ) $ 0.160846
neo
NEO (NEO) $ 12.01
cdai
cDAI (CDAI) $ 0.022061
huobi-token
Huobi (HT) $ 5.24
usdd
USDD (USDD) $ 0.998407
gatechain-token
Gate (GT) $ 5.10
arweave
Arweave (AR) $ 14.54
bitdao
BitDAO (BIT) $ 0.666367
pancakeswap-token
PancakeSwap (CAKE) $ 4.41
zilliqa
Zilliqa (ZIL) $ 0.047472
neutrino
Neutrino USD (USDN) $ 0.992345
basic-attention-token
Basic Attention (BAT) $ 0.459826
blockstack
Stacks (STX) $ 0.516437
enjincoin
Enjin Coin (ENJ) $ 0.704627
radix
Radix (XRD) $ 0.064018
amp-token
Amp (AMP) $ 0.008319
dash
Dash (DASH) $ 57.11
waves
Waves (WAVES) $ 6.16
pax-gold
PAX Gold (PAXG) $ 1,795.65
loopring
Loopring (LRC) $ 0.478748
tenset
Tenset (10SET) $ 3.02
stepn
STEPN (GMT) $ 0.975088
nexo
NEXO (NEXO) $ 1.02
kava
Kava (KAVA) $ 2.29
bitcoin-gold
Bitcoin Gold (BTG) $ 32.25
curve-dao-token
Curve DAO (CRV) $ 1.43
kusama
Kusama (KSM) $ 60.86
mina-protocol
Mina Protocol (MINA) $ 0.923184
defichain
DeFiChain (DFI) $ 0.952217
celo
Celo (CELO) $ 1.16
osmosis
Osmosis (OSMO) $ 1.20