Pretty sure he’s paying a massive amount of interest on those loans, and he would have to liquidate his other assets before he could declare bankruptcy and erase any of the debt… The banks are probably laughing.
No that’s not how leveraged buyouts are structured. Musk isn’t on the hook for the loans, Twitter the company is (basically, Twitter took on debt to help buy its former shareholders out).
Lots of people lose their jobs, something that was once a public service is shut down… and Elon Musk’s reputation takes a minor hit that’s quickly forgotten.
He bought it so he’s the only shareholder. It’s not publicly traded anymore.
The banks that finaced him are extremely furious though.
They should learn not to give someone free money just because they have money already.
Pretty sure he’s paying a massive amount of interest on those loans, and he would have to liquidate his other assets before he could declare bankruptcy and erase any of the debt… The banks are probably laughing.
No that’s not how leveraged buyouts are structured. Musk isn’t on the hook for the loans, Twitter the company is (basically, Twitter took on debt to help buy its former shareholders out).
Precisely, Musk has no personal risk for destroying Twitter. It’s absolutely fucking insane how much free money we give rich people.
Oh, and one of the reasons Twitter will inevitably fail is because of the massive interest payments the company accepted during the purchase.
Oh, no. Musk has $20b in Tesla stock guaranteeing the loans. He could lose control of Tesla if X fails.
So what happens then?
Lots of people lose their jobs, something that was once a public service is shut down… and Elon Musk’s reputation takes a minor hit that’s quickly forgotten.
If you owe the bank $10,000, you’re in trouble. If you owe the bank 10,000,000,000 dollars, the bank is in trouble.
If they aren’t, I am.
With debt is a bit different, as long as he pays it off I don’t think they care what he does with Twitter.
Ah, I thought he only acquired a controlling stake, rather than buying the full company outright.
Why burn 23 billions if you can burn 44?