Facebook Looking for Bigger Credit Line

According to sources familiar with Facebook's future plans, the social networking giant is looking to increase its $ 2.5 billion credit line. The trusted sources refused to be identified as this internal plan is a company matter and not to be spoken about publicly.

With this move the Facebook is looking to cover a significantly major tax hit. According to the sources, the social networking giant will be taking advantage of the strong market position for acquiring improved finances to contribute to its massive growth.

On the other hand, Facebook's spokesman refused to make any comment about these reports. However, a shareholder of Facebook, GSV Capital's Michael Moe, stated that, "All these tax obligations are being created and you need cash to take care of it. You see this all the time but in this case it will be substantial." And, the huge cash requirements to take care of these "would be the motivator of a larger credit facility." reported Reuters.

Earlier, Facebook revealed that they have decided "to pay taxes on their employees restricted stock units (RSU)" after Facebook offered initial public offering for six months RSU were vested. On the basis of stock price of the company during that period, the total amount of this will be billions of dollars.