Claim Giveaway Token Proof of Reserve

Top Metaverse News: Meta Reportedly Issuing $10B in Bonds to Invest in Its Metaverse Products and Other Initiatives

Top Metaverse News:

According to reports, Meta, the social networking business, plans to issue its first batch of bonds to fund additional investments and operations. 

According to two people with reported knowledge of the deal, the company will sell $10 billion in debt to maintain a solid cash flow and finance buybacks.

Meta, one of the first companies to use the metaverse as part of its core business model, is planning to issue debt in order to pay a portion of its operations while maintaining a solid free cash flow. According to people familiar with the deal, the company will issue $10 billion in bonds as part of the company's first debt issuance of this kind.

The operation, which was scheduled to take place on Thursday, drew a large response, with investors offering $30 billion to capitalise on the move. The bonds will have maturities ranging from five to 40 years, with the latter receiving the majority of the demand.

According to sources, the offering has been in the works for the past two months, with Meta opting to announce it following the release of its most recent financial report in July. The company received favourable ratings from various agencies, including an 'A1' rating from Moody's and a 'AA- rating' with a 'stable' outlook from S and P.

The issuing of this bond is related to the drop in free cash flow that the company has experienced over the last year. Meta had $4.45 billion in free cash flow, down from $8.51 billion in the past year. According to sources, the bond sale will provide the company greater breathing room to continue supporting a portion of its activities, including its metaverse projects.

Meta's metaverse drive is costing the company a lot of money in terms of R and D. In its most recent earnings call, the company claimed that its metaverse unit, Reality Labs, had sales of more than $400 million but losses of more than $2.8 billion in the second quarter of 2022. Predictions are also gloomy, with the company admitting that Reality Labs will continue to lose money in Q3.

Meta has also taken some sales moves, boosting the price of its flagship VR headset, the Quest 2, by $100 in order to continue investing in the long-term growth of the VR sector.

Read also: Top Cryptocurrency News: United Kingdom Parliamentary Group Seeks Views of Crypto Industry Players

WHAT'S YOUR OPINION?
Related News
Related Blogs
`