ValueAct Acquires $1 Billion Stake in Meta Platforms

In a significant development, San Francisco-based investment firm ValueAct Capital has taken a $1 billion position in Meta Platforms (NASDAQ:META), the parent company of social media giants Facebook and Instagram. This stock is currently one of ValueAct's key investments, ranking alongside its stake in cloud software leader Salesforce.

Although ValueAct has been accumulating its shares in Meta in recent weeks, the firm is not currently pushing for any major changes at the tech giant. Discussions have occurred between the two entities, but the details of these talks, including at what level they took place and the proposals made, have not been disclosed.

Given Meta's valuation of approximately $1.5 trillion, ValueAct's investment has not significantly impacted the company's stock price. This investment is not characterized as an activist position, which typically involves pushing for substantial changes in management and the board of directors.

Investment managers are expected to submit their 13F filings revealing their positions at the end of the third quarter this weekend. ValueAct's stake in Meta will be included in this filing, but it has been reported that the size of the stake has significantly increased in the weeks since the end of the quarter.

ValueAct has a history of successfully advocating for performance improvements in previous investments, including its 2013 acquisition of a board seat at Microsoft. Unlike other activist investors, ValueAct is known for its collaborative approach with management and boards, typically working behind the scenes to achieve amicable solutions without resorting to public confrontations.

At the time of publication, Meta had not responded to requests for comment, and ValueAct declined to comment on the investment.