3 ms·
Its the terms of the contract. Twitter borrowed $13 Billion, not Elon Musk. Technically, "X Holdings" took on the debt (a new company Elon started up), but "X
by dragontamer 4y ago
Its the terms of the contract.
Twitter borrowed $13 Billion, not Elon Musk. Technically, "X Holdings" took on the debt (a new company Elon started up), but "X Holdings" is effectively Twitter now.
> I can’t just buy a house with a mortgage and walk away.
If you create a business, lets say "Foobar Incorporated", and get the banks to recognize the debt as assigned to "Foobar Incorporated", you can walk away as "Foobar Incorporated" goes bankrupt.
Similarly, it is "X Holdings" who goes bankrupt in this arrangement, not Elon Musk.
- matthewdgreen 4y agoWho is going to own Twitter when this whole mess falls apart?
- sokoloff 4y agoProbably the bondholders (the people who lent the $13B).
- matthewdgreen 4y agoDo we know who specifically that is? Because they're going to own a pretty (societally) important property.
- dragontamer 4y agoMorgan Stanley, Bank Of America, Barclays, Mitsubishi, and a bunch of other banks are the current holders of these bonds. But the banks can sell those bands over the next few weeks, so the "final owners" are still yet to be seen.
- sokoloff 4y agoThey can sell those bonds at any time, really.