The Meta company, although very wealthy, wants to bet everything on the Metaverse and for this reason does not hesitate to go into debt for a considerable sum.
With the financial results being more disappointing than expected, Meta decided to take out a loan to continue its projects for the Metaverse. In fact, the parent company, which owns the giants Facebook, Instagram, and even WhatsApp, had a somewhat difficult year, with revenue falling 1% in the second quarter of 2022. Profit is actually down 36% year over year. It must be said that the year 2021 was very special with the Covid and therefore the social networks had very good numbers (among others).
Zuckerberg is obviously going all out on the Metaverse, and we imagine all of this costs money, especially in gear and research. Meta therefore paid out $10 billion for this sector alone. A gigantic sum that the company eventually preferred to borrow. It’s quite historic because it’s obviously the first debt in the company’s history, and $10 billion is a more than sizable sum. The information was confirmed with Reuters about an interview with Mark Zuckerberg.
Financial analyst Daniel Ives told Reuters Meta should have borrowed that amount a while ago. Nevertheless, according to him, this decision is good because it allows to continue to invest in the famous Metaverse permanently and in an “aggressive” way.
What do you think of Facebook’s projects in the Metaverse? Do you think this will have a positive impact in the long run? Tell us in session Comments.
