Amazon.com Inc. (NASDAQ:AMZN) surges 1.26% to $86.90 in pre trading session on Wednesday as the company said that it has come to an arrangement with several lenders to provide the $8 billion unsecured loan to the world’s largest online retailer.
The revenues from the term loan, which has a 364-day maturity date and a 364-day extension option, would be put to use for general company purposes.
An Amazon spokesperson told Reuters in a statement that given the hazy macroeconomic climate, we have utilized a variety of financing strategies over the past several months to finance capital purchases, debt repayments, acquisitions, and working capital requirements.
The online store has been preparing for expected slower growth as businesses and individuals reduce spending due to rising inflation. That, together with a strong dollar, caused Amazon’s shares to fall by roughly 50% in 2022.
Early in 2023, it had also indicated staff cutbacks but without a specific figure. In November, a source informed Reuters that the corporation planned to eliminate 10,000 jobs.
At the conclusion of the third quarter that concluded on September 30, Amazon had roughly $35 billion in cash and cash equivalents and nearly $59 billion in long-term debt. According to Amazon, Toronto Dominion served as the administrative agent for the credit deal, which included lenders DBS Bank and Mizuho Bank.
Amazon (AMZN) Will Expand Its Standalone App for Sports Streaming
To gain traction with customers, Amazon AMZN is always seeking to extend its sports streaming offerings. Amazon is developing a stand-alone application to watch live sports video, according to a report from The Information. This is evidence of the aforementioned truth. The most recent action demonstrates that Amazon is looking at new opportunities to invest in live sports in order to create new income streams.
In addition to the latest change, the corporation is always forming strategic alliances to grow the number of people who watch videos on its Prime Video streaming service. Popular live sporting events including Thursday Night Football (“NFL”), Yankees baseball games, and select Premier League soccer matches are only available on AMZN.
Amazon is investing heavily in other sports programming to complement the live games. Amazon launched its own sports discussion shows last month on both Prime Video and Freevee, its ad-supported streaming service. To keep sports fans connected to its platforms, the move was made.
The aforementioned initiatives are probably going to help Amazon draw more sports fans to its Prime Video platform, which will increase the number of Prime subscribers. This will increase both the company’s overall sales and subscription revenues. As of November 30, 2022, according to a study from Enterprise Apps Today, Amazon generated $5.16 billion in revenue from Prime Video.
With its expanding sports streaming operations, Amazon is still in a good position to benefit from the market’s anticipated expansion. According to a Verified Market Research analysis, the market for live sports streaming online is expected to reach $93 billion by 2030, growing at a CAGR of 24.6% between 2022 and 2030.