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>I think I'm trying to state: "Aren't the bulk of Meta's offerings too susceptible to trends to garner the trust required for a 40 year bond?" Meta has more ca
by ramesh31 4y ago
>I think I'm trying to state: "Aren't the bulk of Meta's offerings too susceptible to trends to garner the trust required for a 40 year bond?"
Meta has more cash on hand and revenue than most countries. They are an institution unto themselves at this point, regardless of the future success of any individual product.
- bobthepanda 4y agoYeah, most company implosions take a while, and WeWork, Moviepass et al. are not the norm. Sears was dying for decades.
- chris_wot 4y agoSo why do they need to raise more funds?
- 0zemp2c 4y agowhy does any company? because they see the terms as advantageous all the money-flush tech companies issue debt, even though they have no "reason" to
- voisin 4y agoTo avoid taxes many companies keep profits offshore in lower tax jurisdictions, only paying US taxes when money is repatriated. It is super common for companies to have billions offshore but to keep it there, take out US debt to und share buybacks or other US domestic initiatives and then only repatriate each year the amount needed to service that debt. IMO, it’s a stupid loophole that legislators should close.
- bragr 4y agoMight be cheaper to borrow than turn some cash equivalent into cash or move it where they need it.
- s1artibartfast 4y agoNeed to or want to? Offering a bond and using it for buybacks is a way for shareholders to make future profits today.