"Meta holds a 20% stake, while funds managed by Blue Owl own 80%. Through a holding company, the JV issued $27.3 billion in bonds - described as the largest private-credit transaction on record - to finance buildings, power, cooling, and connectivity infrastructure. Meta is providing construction services, property management, and a residual value guarantee to help secure the investment-grade rating for the debt."
"Enron, once a leading energy company, collapsed in 2001 amid the largest bankruptcy filing at the time, valued at $63.4 billion in assets. The scandal involved fraudulent accounting through special purpose entities that hid billions in debt and inflated profits, leading to investor losses exceeding $74 billion and criminal charges against executives. Reforms like Sarbanes-Oxley followed to improve transparency. Is Meta Platforms suddenly too risky for investors?"
Enron collapsed in 2001 after using special purpose entities to hide billions in debt and inflate profits, producing investor losses over $74 billion and prompting reforms such as Sarbanes-Oxley. Meta Platforms partnered with Blue Owl Capital on the $27 billion Hyperion data center JV, holding a 20% stake while Blue Owl-managed funds own 80%. The JV issued $27.3 billion in bonds via a holding company to finance infrastructure, with Meta providing construction services, property management, and a residual value guarantee. The JV is structured as a variable interest entity (VIE); Meta concluded it is not the primary beneficiary, which keeps those assets and liabilities off its consolidated balance sheet but raises accounting and investor-risk scrutiny.
Read at 24/7 Wall St.
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