Facebook to Increase Credit Limit
It has been recently revealed that Facebook is going to increase its $2.5 billion credit limit. The information has not been officially revealed and has been provided by two sources, which are in the known of the matter.
The decision to increase the limit is taken to cover a significantly major tax hit. It is expected that with this decision, Facebook is going to achieve conquer the market. Facebook's spokesman said that he cannot comment on the issue and everything will be revealed with the time.
It has also been said that Facebook is also going to enter in the initial public offering, which will increase its value in stock market. The world's largest social media network is said to be taking benefits of strong position to get more financing so that it can attain phenomenal success.
Sources, who do not want to reveal their identity, are of the view: “All these tax obligations are being created and you need cash to take care of it. You see this all the time but in this case it will be substantial”.
There are a lot many plans, which Facebook will be taking to increase its market value like increasing credit facility and selling sell equity securities among other steps. The sources said that these steps will also help Facebook for not getting into tax problem again.
Moe, who is founder of investment bank ThinkEquity, said that Facebook is reaping the benefits of all the efforts it has done to reach at the top position. Moreover, they are using the right policy to make money and that is to get the money whenever you can.
Zynga, the social games giant, agreed with Moe and said that it seems that Facebook is going to break its own success record.