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Twitter lost ~200 million last year on ~5 billion revenue. With this purchase, the company is burdened with an additional 1.2 billion in interest expense on Elo
by mullingitover 4y ago
Twitter lost ~200 million last year on ~5 billion revenue. With this purchase, the company is burdened with an additional 1.2 billion in interest expense on Elon's loans. Elon would have to fire something like 400% of their workforce (with no resulting loss in revenue) to dig himself out of the hole just from the added interest payments he's on the hook for.
- Proven 4y ago
- europeanguy 4y agoCan someone explain to me how is it possible that a person takes out a loan, but then a company that the person owns is responsible for the loan?
- everfrustrated 4y agoWelcome to capitalism for the rich
- tppiotrowski 4y agoMaybe Elon is still responsible for the loan but maybe Twitter is the collateral. If he fails to repay the loan, the bank seizes Twitter assets but Musk's personal wealth is untouched. Similar to how LLC's shield their owner from being financially responsible.