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One thing that's always felt distasteful is the practice of essentially making the company buy itself. Musk bought Twitter, but Twitter itself is on the hook f
by bena 4y ago
One thing that's always felt distasteful is the practice of essentially making the company buy itself.
Musk bought Twitter, but Twitter itself is on the hook for $13 billion of that. It reminds me what happened with ToysRUs. It was saddled with the debt of having been taken private by vulture capitalist, eventually couldn't make its interest payments and folded. Despite never really having a down year of sales.
That's right, it was sold, not because it was losing money, but because it wasn't growing at the time. Profits were stagnant. So they were essentially made to buy themselves and the people who engineered this deal and "bought" ToysRUs collected consultancy fees and percentages and made out like bandits.
The difference here is that I don't think there's a clear way for Musk to extract that kind of money from Twitter in the same manner.