Meta (Facebook) spends crazy amounts and goes into debt for the Metaverse

The Meta company, although extremely wealthy, wishes to bet everything on the Metaverse and does not hesitate for this reason to go into debt for a substantial sum.

With financial results more disappointing than expected, Meta decided to take out a loan to continue its projects for the Metaverse. Indeed, the parent company which includes the behemoths Facebook, Instagram and even WhatsApp had a somewhat difficult year with turnover which fell by 1% in the second quarter of 2022. Profits are even down by 36%. compared to last year. It must be said that the year 2021 was very special with the Covid and social networks therefore had very good figures (among other things).

The Metaverse, Meta’s workhorse

Meta illustration by Facebook.

Zuckerberg is obviously betting everything on the Metaverse, and we imagine that all this costs money, especially in equipment and research. Meta therefore paid out $10 billion just for this sector alone. A gargantuan sum that the company finally preferred to borrow. It’s quite historic because it is obviously the first debt in the history of the company, and 10 billion dollars is a more than substantial sum. The information was confirmed with Reuters via an interview with Mark Zuckerberg.

Financial analyst Daniel Ives told Reuters that Meta should have borrowed that amount a while ago. Still according to him, this decision is good because it will allow to continue to invest durably and in an “aggressive” way in the famous Metaverse.

What do you think of Facebook’s projects in the Metaverse? Do you believe this will have a long-term beneficial impact? Tell us in the session comments.

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