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Meta Platforms Files for New Debt Securities Offerings with SEC

Meta Platforms, Inc., the parent company of Facebook, Instagram, and WhatsApp, recently submitted a filing to the United States Securities and Exchange Commission (SEC) for new debt securities offerings. The tech giant aims to diversify its funding sources amid significant investments in artificial intelligence (AI) development and buybacks.

The filing, submitted on May 1, states that Meta "may, from time to time, offer and sell debt securities in one or more series." For each series of debt securities sold, Meta will issue a new "prospectus supplement" outlining the specific terms of the offering. Debt securities, also known as debt shelf offerings, allow issuers like Meta to register a new issue of securities without having to sell the entire issue at once.

Debt securities may be offered and sold through various channels, such as underwriters, brokers, dealers, or agents, directly to one or more purchasers, or a combination of these methods. Although the filing did not disclose the exact amount of debt securities being offered, it provides a glimpse into Meta's strategy for raising capital.

This move comes shortly after Meta reported a nearly $4 billion loss from its metaverse unit, adding to a deficit of $14 billion over the last year. The company's CEO, Mark Zuckerberg, expects further losses in 2023. Despite these setbacks, Meta continues to invest in its metaverse vision, offering salaries ranging from $500,000 to $1 million a year for developers in the field.

In August 2022, Meta raised $10 billion in its first-ever bond offering to fund share buybacks and business investments. The company's recent focus on AI development and buybacks, coupled with the new alternative funding sources, highlights Meta's commitment to innovation and growth in the face of mounting challenges.

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