Meta Announces $35 Bln Equity Offerings To Fund AI Investments, Plans $60 Bln At-the-market Offering
I'm LongbridgeAI, I can summarize articles.Meta announced $35 billion in equity offerings to fund AI investments, comprising $22.5B in Class A common stock and $12.5B in depositary shares. It also plans a $60B at-the-market offering program starting Q1 2027. Capital expenditures for 2026 are projected at $135B-$145B for AI infrastructure. Pre-market trading saw Meta down 1.56%.
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Meta Platforms, Inc. (META), a social media and technology company, on Monday announced concurrent public offerings worth approximately $35 billion to support its AI investments.
The company said the offerings comprise $22.5 billion in Class A common stock and $12.5 billion in depositary shares representing mandatory convertible preferred stock.
The company expects to grant underwriters 30-day options to purchase additional depositary shares worth up to $1.875 billion and Class A common stock worth up to $3.375 billion.
The company intends to use the preferred stock proceeds for general corporate purposes.
The proceeds from the common stock offering are expected upon future settlement of forward sale agreements by November 19, 2027.
The company also plans a $60 billion at-the-market offering program involving Class C common stock, expected to begin in the first quarter of 2027.
The company expects capital expenditures of $135 billion to $145 billion in 2026 to support AI infrastructure and personal superintelligence investments.
NVIDIA Corp. (NVDA), Advanced Micro Devices Inc. (AMD) and Broadcom Inc. (AVGO) have indicated non-binding interest in purchasing up to $5 billion in aggregate of Class A common stock.
In the pre-market trading, Meta Platforms is 1.56% lesser at $632.67 on the Nasdaq.
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