Catenaa, Tuesday, October 27, 2026- Meta’s $25 billion stock sale was oversubscribed by about 500% as the company seeks to raise $100 billion for AI.
Citing people familiar with the matter, Bloomberg News reported that long-only and existing investors bought more than half of the common stock offering.
“The investors taking the 15 largest stakes in the offering accounted for about 70% of the shares,” the people told Bloomberg News.
People told Bloomberg News that said the mandatory convertible preferred stock offering was also oversubscribed multiple times.
Morgan Stanley and Goldman Sachs Group worked on the offering.
According to Yahoo Finance, Meta priced $25 billion of regular stock at $625 a share, below Friday’s close. Another $12.5 billion went into preferred stock that pays 6.5% and turns into common stock in 2029.
Meta also plans to establish a separate program to sell up to $60 billion in nonvoting Class C shares after the new stock begins trading in early 2027. The company has not finalized the program’s timing or terms.
According to Bloomberg News, the company pledged to devote the new funds to AI infrastructure and personal superintelligence.
It has unveiled a personal AI agent called Muse and an AI model called Muse Wonder, which leadership says is on par with OpenAI’s ChatGPT and Anthropic PBC’s Claude for tasks such as coding, Bloomberg News reported.
Yahoo Finance reported that Meta spent almost $34 billion on buildings and equipment, mostly for AI, last quarter, while its business brought in almost $33 billion in cash, pushing free cash flow negative for the first time since 2012, when Meta went public.
According to Yahoo Finance, the company that bought back about $45 billion of its own stock in 2021 hasn’t bought back a share in a year.
Meta’s decision to introduce nonvoting shares also reflects negotiations over Mark Zuckerberg’s voting control and potential tax obligations. Regulatory filings show the company sought a structure that allows new equity financing while protecting existing shareholders’ voting rights.
