Meta is set to issue debt in order to continue to fund part of its operations and to maintain a healthy free cash flow. It is reportedly said that the company will be issuing $10 billion in bonds as part of the first debt offering.
The bonds will have different maturities, going from five years to 40 years. 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.
The issuance of this bond has to do with the reduction of the free cash flow that the company has experienced during the last year. 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.
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. The company is predicting that Reality Labs would continue to lose money during Q3.
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