Meta launched about $35 billion in public equity offerings Monday and outlined a possible $60 billion share-sale program, setting out a financing plan of up to $95 billion as it expands spending on artificial intelligence infrastructure.
The plan is not completed funding. The initial offerings include approximately $22.5 billion in Class A common stock tied to forward sale agreements and approximately $12.5 billion in depositary shares representing mandatory convertible preferred stock, the company said in its announcement.
Meta does not expect to receive proceeds immediately from the common-stock offering. Instead, it expects cash when it settles the forward sale agreements. The proposed $60 billion at-the-market program is not expected to begin until the first quarter of 2027, after trading starts in Meta’s previously announced Class C common stock.
A future program, not a firm commitment
Meta said it has not entered into an agreement for the future at-the-market program, and its timing, size and terms have not been determined. The company cautioned that the program might not be set up and that the amount of shares ultimately sold is uncertain.
The company expects $135 billion to $145 billion in capital expenditures in 2026. It said it generated $97 billion in operating cash flow during the first nine months of the year and held approximately $82 billion in cash, cash equivalents and marketable securities at the end of the third quarter.
Meta described equity capital as one part of a funding mix that also includes operating cash flow, investment-grade debt and strategic partnerships.
Chipmakers indicate interest
Nvidia, Advanced Micro Devices and Broadcom indicated interest in buying up to a combined $5 billion of the Class A shares in the common-stock offering. Those indications are not binding, and the companies could purchase more, fewer or no shares.
Morgan Stanley and Goldman Sachs are the lead joint bookrunning managers for the offerings. The dividend rate, conversion terms and other terms of the preferred stock will be set when that offering is priced.
JBizNews Desk | Menlo Park, California
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