Fb-parent Meta Platforms mentioned on Thursday it will make its first-ever bond providing, at a time when the social media firm is making large investments to fund its metaverse tasks.
Meta didn’t disclose the dimensions of the providing, however mentioned it will use the proceeds for capital expenditures, share repurchases, acquisitions or investments.
Among the many high-flying megacap expertise corporations, Meta is the one one that doesn’t have any debt on its books.
The corporate’s free-cash movement has been depleting because it costs forward with its metaverse plans, which led the change in its identify to Meta Platforms from Fb final yr.
Within the second quarter ended June 30, Meta had $4.45 billion in free money movement, in contrast with $8.51 billion a yr in the past and $8.53 billion within the prior quarter. Final week, the corporate additionally reported a drop in quarterly income for the primary time.
Chief Monetary Officer Dave Wehner mentioned on a post-earnings convention name that firm had a “substantial quantity” in its buyback program and expects to proceed with buybacks as a part of its capital allocation technique.
The corporate acquired an ‘A1’ ranking from Moody’s and an ‘AA- ranking’ and a ‘steady’ outlook from S&P.
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