Twitter was locked in a chaotic doom loop. Now it’s on the verge of collapse | Siva Vaidhyanathan
Twitter was locked in a chaotic doom loop. Now it’s on the verge of collapse | Siva Vaidhyanathan
Since the ‘genius’ bought Twitter last year, he’s made a series of poor decisions – and now the platform is almost unusable
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The sad thing is this guy will light $44B on fire, probably lose 99% of it, and not even feel it.
He'll feel it because a lot of the deal was financed off of his Tesla stock. It isn't that Musk will lose money from Twitter; he'll lose some control over Tesla. Worse, it could push Tesla's stock price down, which may be an issue as a lot of people shorted Tesla's stock.
Yep.
And it is a lot of Tesla stock he had to put to cover that much.
The banks won't hold it or even accept it directly tho.
Musk would have to sell all that stock, which would crash the stock price. Meaning he has to come up with the money from somewhere else.
The whole thing is a house of cards and has a chance to completely wipe him out. He's over leveraged, it's not that complicated.
protip: corporate debt is not the same thing as out of pocket debt, no one is understanding this lol
Maybe rather than "lol"ing at people for not understanding something, you could explain the important differences ?
Help them understand by explaining it, then.
$33 Billion.
$13 Billion (of the $46 Billion deal) was loans from banks to Twitter.
-$2 Billion of debt IIRC before the deal + $13 Billion from banks + $33 Billion from Elon Musk == $44 Billion (46 billion - 2 billion prior debts).