Facebook pledges £80.62 million donation to the global news media

The
U.S tech giants are joining hands to contribute financially to the global
battle against the widespread Coronavirus pandemic. In its statement on Monday,
Facebook (NASDAQ:FB) said that it will donate £80.62 million to the news
organizations that have been hit hard by the ongoing health emergency.

The
company said it will not only offer financing but also advertising spending to
the news media including the U.S-based local publishers. Facebook’s
announcement came as the news organizations, particularly the ones that focus
on print media, continue to highlight the financial damage they face due to the
health crisis.

Many
of the news companies have already minimized their marketing budgets in an
attempt to cut costs amidst the rising uncertainty of the fast-spreading
Coronavirus.

L’Osservatore
Romano Suspended Printing Last Week

L’Osservatore
Romano, a Vatican newspaper that has a history of 160 years joined the long
list of news organizations last week that suspended printing as the flu-like
virus made it increasingly hard to operate without putting the workers at the
risk of getting infected.

Facebook’s announcement on Monday also accentuated that the company wishes to offer £20.18 million to the local media in emergency grant funding. The remaining £60.55 million, Facebook added, will be donated to the global news organizations for marketing.

The largest social network also declared on Monday that the 1^st round of grants has already been completed that funded 50 of the U.S and Canada-based local newsrooms.

Leaders
of the U.S corporate sector are making sizeable donations to help cushion the
economic blow of Coronavirus even as the pandemic makes it harder for these companies
to sustain operations themselves.

Google
Announced £645 Million Donation Last Week

Google’s
parent company, Alphabet
Inc. also announced £645 million donation directed at health organizations,
businesses, and the government at large. Google’s donation also comprised both
funds and ad credits.

Facebook
itself has taken a significant financial blow due to the Coronavirus pandemic.
At the time of writing, it is exchanging hands at £129.20 per share in the
stock market that translates to a little under 25% decline in 2020 so far. Facebook’s
performance in 2019, on the contrary, was reported largely upbeat with an
annual gain of over 50%. The stock opened at £109 per share in January 2019 but
closed the year significantly higher at £168 per share in December. Facebook
currently has a market cap of £368.50 billion with a price to earnings ratio of
24.91.