Facebook is set to make $1 billion profit in the US, as it announced it would sell its US business for $1 to buy the Facebook US business.
Key points:Facebook US revenue fell 6 per cent to $13.6bn in the first quarter of 2017The social network will invest $500m to expand its US operationsFacebook shares fell 7 per cent in after-hours trading after the news brokeMr Zuckerberg said the move would boost the company’s US revenue, adding: “It will help us accelerate our growth, and we will do this with a great focus on US growth, not just for our US business but for our global business.”
He said Facebook would “continue to invest in our operations and expand our businesses around the world”.
“This is an opportunity for us to take advantage of this opportunity.”
Facebook US chief executive Sheryl Sandberg said the news would “make us stronger and better positioned for the future”.
“I’m excited about the future,” she said.
“It is a great time to be an American entrepreneur and to be able to help build a better future for our people and our world.”
Facebook said it was investing $500 million in US operations and expanding its global footprint.
The announcement came a day after it said its US revenue had fallen 6 per per cent year-on-year to $12.5bn, compared to $15.3bn in Q1 2016.
“As Facebook continues to grow and expand across the world, we are investing in US and global operations,” it said.
Mr Zuckerberg added the new money would support the Facebook team in the United States and help the company to improve its services.
“In 2017, we made more than $1 trillion in revenue in the USA and China,” he said.
Facebook will invest at least $500M in US to expand operationsThis week, Facebook said it would spend $500million to expand and expand its U.S. operations, with an investment of $500mn in a new headquarters and office space in San Francisco.
It will also spend $250m to build a new campus in the city, and $250mn to expand a network of 50,000 employees, with plans to open a new office in China.
Facebook’s US earnings fell to $2.4 billion in the quarter ended June 30, down 6 per in the year-ago period.
Its first-quarter profit dropped to $1,005m, or $1 per share, compared with $1billion a year ago.
However, the company has now reported a $3.5 billion profit for the year.
Analysts polled by Thomson Reuters had expected the company will have profit of $2bn.