4 ms·

This is a real-time history rewrite. "Once he got access to the company’s finances, the Tesla boss realized it was losing millions of dollars every day [...]"

by _jal 4y ago

This is a real-time history rewrite. "Once he got access to the company’s finances, the Tesla boss realized it was losing millions of dollars every day [...]" He knew it would be losing $millions/day because he forced the situation that created the debt. I stopped reading at that point, not interested in dissecting how a beat-sweetener slides into obsequious myth building.

drewcoo 4y ago
> He knew it would be losing $millions/day because he forced the situation that created the debt. No. He knew about the company's finances because that's part of M&A due diligence. https://morganandwestfield.com/knowledge/due-diligence-checklist/ https://morganandwestfield.com/knowledge/due-diligence-check...
- sp332 4y ago
  He waived due diligence on this deal. https://www.cnbc.com/2022/06/06/musk-says-twitter-is-refusing-to-share-data-on-spam-accounts.html https://www.cnbc.com/2022/06/06/musk-says-twitter-is-refusin...
- _jal 4y ago
  No. The $13B debt he saddled Twitter with did not exist during the due diligence phase, which he also waived. Word was prior to the takeover, their debt was on the order of $200M.
  - judge2020 4y ago
    Based on this Reuters article[0], it was more around $5.3B, but they were only losing 200M/yr. > It's not clear how much of the $5.29 billion debt Twitter had before the acquisition was refinanced or remained with the company. It's also not clear how much of the $2.7 billion in cash that Twitter held as of the end of June it got to keep once it went private. 0: https://www.reuters.com/markets/deals/twitters-massive-revenue-drop-adds-heavy-debt-burden-2022-11-07/ https://www.reuters.com/markets/deals/twitters-massive-reven...
    - _jal 4y ago
      Ah, thanks for the correction.
- judge2020 4y ago
  OP is making a point that Twitter is now saddled with ~13 billion in debt, with 1.2B in interest payments now required over the next 12 months[0]. > Musk and his co-investors collectively cut a check for more than $30 billion of their own money for the Twitter deal. That money would be at risk if Twitter required a debt restructuring down the line. 0: https://www.reuters.com/markets/deals/twitters-massive-revenue-drop-adds-heavy-debt-burden-2022-11-07/ https://www.reuters.com/markets/deals/twitters-massive-reven...
- sulam 4y ago
  The $4M / day that Musk says Twitter is losing is comprised of $3.2M in cash to service the debt and $.8M other losses.

by _jal 4y ago

drewcoo 4y ago

> He knew it would be losing $millions/day because he forced the situation that created the debt. No. He knew about the company's finances because that's part of M&A due diligence. https://morganandwestfield.com/knowledge/due-diligence-checklist/ https://morganandwestfield.com/knowledge/due-diligence-check...

sp332 4y ago
He waived due diligence on this deal. https://www.cnbc.com/2022/06/06/musk-says-twitter-is-refusing-to-share-data-on-spam-accounts.html https://www.cnbc.com/2022/06/06/musk-says-twitter-is-refusin...
_jal 4y ago
No. The $13B debt he saddled Twitter with did not exist during the due diligence phase, which he also waived. Word was prior to the takeover, their debt was on the order of $200M.
- judge2020 4y ago
  Based on this Reuters article[0], it was more around $5.3B, but they were only losing 200M/yr. > It's not clear how much of the $5.29 billion debt Twitter had before the acquisition was refinanced or remained with the company. It's also not clear how much of the $2.7 billion in cash that Twitter held as of the end of June it got to keep once it went private. 0: https://www.reuters.com/markets/deals/twitters-massive-revenue-drop-adds-heavy-debt-burden-2022-11-07/ https://www.reuters.com/markets/deals/twitters-massive-reven...
  - _jal 4y ago
    Ah, thanks for the correction.
judge2020 4y ago
OP is making a point that Twitter is now saddled with ~13 billion in debt, with 1.2B in interest payments now required over the next 12 months[0]. > Musk and his co-investors collectively cut a check for more than $30 billion of their own money for the Twitter deal. That money would be at risk if Twitter required a debt restructuring down the line. 0: https://www.reuters.com/markets/deals/twitters-massive-revenue-drop-adds-heavy-debt-burden-2022-11-07/ https://www.reuters.com/markets/deals/twitters-massive-reven...
sulam 4y ago
The $4M / day that Musk says Twitter is losing is comprised of $3.2M in cash to service the debt and $.8M other losses.