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Meta made headlines when it announced that from now on the main focus is on the metaverse. Now, it is all prepared to issue debt so that it can continue to fund its operations. And, additionally maintaining a flow of cash. According to close sources, as part of its first debt offering, the company will be issuing $10 billion in bonds.
The tech community has given a warm welcome to the operation. To make most of this move the investors have offered $30 billion. The bonds have various maturities ranging from five years to 40 years. Though the latter has attracted most of the demands.
The sources further revealed that the work on offer is going on for the past months. Meta launched it after the release of its latest earnings report in July. The company has received satisfactory ratings from various agencies.
The reduction in cash flow experienced by the company during the last year is related to the bond issue. In cash flow, Meta had $8.51 billion while a year ago the giant had $8.51 billion. The major aim behind the bond offering is to give the company more space to continue funding part of its operations. The funding part also involves the metaverse initiatives.
A lot of funds are going into the research and development of the metaverse venture of the Meta. The company disclosed that Reality Labs, its metaverse unit, has reached sales of over $400 million. However, during Q2 2022, it suffered losses worth $2.8 billion. Even during Q3, Reality Labs continued to lose money.
Meta has also shown its activity in the sales region. It has increased the price of the Quest 2, its flagship VR headset, by a whopping $100. By doing this the firm aims to continue investing in pushing the VR industry forward.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
