Meta Platforms announced a $35 billion financing round involving Class A common stock and mandatory convertible preferred stock, following reports of a potential $40 billion capital raise. Major technology firms, including Nvidia, AMD, and Broadcom, have expressed interest in subscribing to up to $5 billion of the Class A shares. Following the announcement, Meta's stock rose by over 2% in pre-market trading on October 26. This development occurred shortly after the company's CFO initially stated there were no specific financing plans to announce.
The transaction includes common shares and mandatory convertible preferred shares, as the funding comes amid a higher minimum forecast for capital spending on AI infrastructure.
Read the full storyThe announcement coincided with negative free cash flow in the third quarter and projected capital spending of up to $145 billion in 2026, while the company considers a separate, unfinalized stock sale program.
Ad impressions and prices grew, while free cash flow posted a deficit of $2.12 billion and the company raised the lower end of its capital spending outlook.