For the first time in its history, Meta (Facebook, Instagram) will launch a loan – LINFO.re

Meta, the parent company of Facebook and Instagram, will launch a loan for the first time. The group of Mark Zuckerberg indicates in particular: “Meta intends to use the proceeds of the loan for general objectives”.

“Capital expenditures, stock buybacks, etc.”

According to a document filed Thursday, August 4 with the DRYthe American stock market policeman, Meta will issue bonds. The group writes, in comments reported by BFM TV: “Meta intends to use the proceeds of the loan for general purposes, which may include (…) capital expenditures, stock repurchases, acquisitions or investments”. The firm does not give figures as to the amounts of funds it intends to raise, nor the duration of the bonds.

According to the news agency Bloomberg, Meta would seek between 8 and 10 billion dollars (7.8 and 9.7 billion euros). All this money would be divided into 4 loans, and the longest would be over 4 decades, with interest 1.8 percentage points higher than that of US Treasury bonds.

> To read also: Mark Zuckerberg: ‘Facebook and Instagram will double posts from accounts you don’t follow’

“…worse than three months ago”

Meta is currently undergoing budget cuts from advertisers, consequences of the poor economic situation. Also, there is competition like TikTok, very popular with young people. During a conference call with analysts, mark zuckerberg recognised : “the situation seems worse than three months ago”.

According to the analyst Dan Ives of Wedbush Securitiesissuing bonds is a “good idea”and by the way, “they should have done it a long time ago”.

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