- Facebook to donate £80.62 million to global news media in financing and advertising spending.
- First round of grants funded 50 local newsrooms in the U.S and Canada.
- Alphabet Inc. also announced £645 million donation last week to combat Coronavirus.
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 1st 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.