Meta Platforms launched its first-ever dividend, alongside reporting better-than-expected income and revenue pushed by robust advert gross sales in the course of the vacation purchasing season. With this, chief govt Mark Zuckerberg may probably obtain an annual payout of round $700 million ( ₹5,800 crore) from this historic dividend for traders.
The firm declared a quarterly money dividend of fifty cents per share for Class A and B frequent inventory, beginning in March. Given Zuckerberg’s possession of roughly 350 million shares, he stands to achieve roughly $175 million in every quarterly fee earlier than taxes, Bloomberg reported.
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Why is Meta providing dividends?
Meta’s determination to pay dividends offers an outlook on its future development plans. Unlike many fast-growing tech firms that use earnings for brand spanking new merchandise or acquisitions, Meta is choosing dividends.
While they’re investing closely in synthetic intelligence, regulatory challenges restrict their means to make large acquisitions.
After Meta laid off about 21,000 staff and narrowed its focus, the inventory virtually tripled in 2023.
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To calm down traders?
The introduction of a brand new dividend and an additional $50 billion for share buybacks introduced alongside the beneficial outcome would possibly encourage extra endurance from traders, supporting Mark Zuckerberg’s long-term bets on synthetic intelligence and the metaverse.
How a lot is Meta CEO Zuckerberg’s wage?
According to knowledge obtainable from filings, in 2022, Zuckerberg earned $27.1 million in whole, overlaying his base wage of $1 and personal safety bills, as per filings.
Meta has not disclosed govt compensation for 2023.
How has market reacted to the choice?
After the market closed, Meta’s shares jumped greater than 14 per cent, boosting the corporate’s worth by over $140 billion. The after-hours good points alone have been greater than 5 occasions the complete worth of social media rival Snap Inc.
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Facebook turns 20 this week
Meta, previously generally known as Facebook, is about to rejoice the twentieth anniversary of its flagship social community platform. Facebook was established in a school dorm room on February 4, 2004. Since then the corporate has developed into the world’s largest social media entity, linking over 3 billion individuals worldwide.
(Inputs from wires)
Source web site: www.hindustantimes.com
