Elon Musk's Twitter takeover has ended up as the worst buyout deal for banks since the financial crisis
Elon Musk's Twitter takeover has ended up as the worst buyout deal for banks since the financial crisis
The WSJ reported on Tuesday that the debt for Musk's Twitter purchase has been stuck on banks' balance sheets, eating into the ability to fund other deals.
- Elon Musk's Twitter acquisition ended up being the worst financing deal for banks since 2008, the WSJ said.
- The $13 billion in loans Musk took out have been stuck on banks' balance sheets.
- The loans have cut into pay for bankers and lenders' ability to finance other deals, the Journal reported.
Idk, you buy a brand and one of the largest social networks everywhere, then you perform some genius business moves:
- "Cut waste", fire the bulk of your talent and hamper the capacity of your network.
- Break embedding for a while to disable reply visibility on the public web
- Ask developers and operators "how many lines of code they contributed" and to print it out
- You completely remove the iconic branding of your network, and do a botched job of redirecting.
- You reinstate trolls and right wing misinformation.
- You cheapen the verified label.
- You launch a streaming platform on the hampered infrastructure.
How is any of this supposed to be moves that any lender could expect a return from?
I'm embarrassed to admit but I brought into the Musk hype early on. You know Tesla and SpaceX.
But the second he started talking about programming (something I know a lot about) I realized he doesn't have a clue.
He's good at talking and getting smart people to do the actual work. In fact he's not even great at talking anymore.
Electric vehicles and space exploration are two things that need to happen for humanity's long term survival. It isn't gullibility to applaud someone for moving either thing forward, even if they're just the money guy. We live in a capitalist society, that is just what was going to happen short of another FDR or JFK restoring trust in American government.
It's ignoring the evidence afterwards that is the problem, and you didn't, so there's nothing to be ashamed of.
How could you forget publicly telling advertisers to “go fuck yourself”?
That's a galaxy brain business move, too genius for the genius list.
What about the 2008 crisis was bad for banks? They made hundreds of billions of dollars for a decade, selling literally nothing, gave themselves huge bonuses and golden parachutes, and then got government bailouts. Within 7 years they were back at it, doing the exact same thing. It was a crisis for you and me, it was a consequence-free piggy bank for the banks.
I wonder what part of the deal is causing a loss? A loan under no normal circumstances can lose money. They gave Musk $13B that he had to pay back with interest. As collateral he had to put up Tesla stock. How can that lose money?
twitter is losing revenue and cant pay the principle on the loan. nobody will buy this debt from the banks that issued the loan because twitter is a sinking ship. the great majority of elon's wealth is tied up in tesla stock, so if he sells any the value of the rest of what he holds goes down because the sale effects the stock price... basically nobody is solvent enough to repay the loans, so the banks that issued the loans are stuck with them instead of selling that debt to get it off their books fast.
Boohoo 😢 /s
Oh won't someone think of the banks /s
Don't worry, it's not their money they're playing with!
Really, thanks to the superpower they have of using money that doesn't even exist (Think you could make money if you could make money out of thin air?) it almost isn't anyone's money.
Except when the bill comes due, then it's the taxpayer's money. The middle class didn't need that money anyway.
Should he buy oil companies now? O Yes, definately O No, too late