As it attempts to finance share buybacks and investments to reform its business, Meta Platforms Inc., the parent company of Facebook, announced on Tuesday that it has raised $10 billion in its first-ever bond issue.
The selling would assist Meta, the only major technology company without debt, in creating a more conventional balance sheet and funding certain pricey projects, such its virtual reality platform, the metaverse.
Recently, other corporate behemoths including Apple Inc. and Intel Corp. issued bonds to raise $5.5 billion and $6 billion, respectively.
With recession worries and competition pressures impacting its sales of digital advertisements, Meta set a dour outlook and reported its first-ever quarterly revenue decline in late July.
The Menlo Park, California-based business gave a pessimistic prognosis and revealed its first-ever quarterly revenue fall last month as worries about the recession and increased competition harmed sales of digital advertisements.
Meta Platforms received an A1 issuer rating from Moody’s last week. The future seems promising.
According to Moody’s, “The A1 issuer rating is based on Meta’s excellent credit profile, which reflects the platform brands’ leading worldwide positions in social networking and is underpinned by its sizable user base.”
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