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>He has to strip down the car fast while somehow also keeping it road-worthy and operational. But this is my point. By doing it in this order he is risking co

by slg 4y ago

>He has to strip down the car fast while somehow also keeping it road-worthy and operational. But this is my point. By doing it in this order he is risking continued operation of Twitter because he no longer can ensure Twitter can either properly staff business critical teams or retain critical institutional knowledge for how to run the company. He is jeopardizing the continued viability of a $44b investment to save maybe a few hundred million max.

danans 4y ago
> He is jeopardizing the continued viability of a $44b investment to save maybe a few hundred million max. Both he and the market know that he paid too much for Twitter. It isn't worth $44B, but he needs to make it lean enough to start throwing off enough cash to pay back the loans he took to buy it at that price. Since it is very hard to increase revenue (especially when he is allowing more advertiser-repellent content), he is trying to dramatically cut costs while trying to increase non advertising revenue. He can't go back to the banks and the Saudi sovereign wealth fund and explain to them that he needs a deferment so he can invest in more efficient SRE and content moderation. He has to sleep in the bed he made, which means show his creditors the money.
- lupire 4y ago
  Counterparty risk. Do you have think the banks and Saudis want $1B this year and $0 after when Twitter collapses, or $0 this year and $500M in future years? Do you Elon wants the banks to foreclose and seize Twitter? Or have to sell TSLA?
  - danans 4y ago
    > Do you Elon wants the banks to foreclose and seize Twitter? Or have to sell TSLA? I don't think he wants to sell TSLA to pay debts but might have to.
    - aisengard 4y ago
      Pretty sure he already has: https://www.cnbc.com/2022/11/10/elon-musk-tells-twitter-staff-he-sold-tesla-stock-to-save-twitter.html https://www.cnbc.com/2022/11/10/elon-musk-tells-twitter-staf...

by slg 4y ago

danans 4y ago

> He is jeopardizing the continued viability of a $44b investment to save maybe a few hundred million max. Both he and the market know that he paid too much for Twitter. It isn't worth $44B, but he needs to make it lean enough to start throwing off enough cash to pay back the loans he took to buy it at that price. Since it is very hard to increase revenue (especially when he is allowing more advertiser-repellent content), he is trying to dramatically cut costs while trying to increase non advertising revenue. He can't go back to the banks and the Saudi sovereign wealth fund and explain to them that he needs a deferment so he can invest in more efficient SRE and content moderation. He has to sleep in the bed he made, which means show his creditors the money.

lupire 4y ago
Counterparty risk. Do you have think the banks and Saudis want $1B this year and $0 after when Twitter collapses, or $0 this year and $500M in future years? Do you Elon wants the banks to foreclose and seize Twitter? Or have to sell TSLA?
- danans 4y ago
  > Do you Elon wants the banks to foreclose and seize Twitter? Or have to sell TSLA? I don't think he wants to sell TSLA to pay debts but might have to.
  - aisengard 4y ago
    Pretty sure he already has: https://www.cnbc.com/2022/11/10/elon-musk-tells-twitter-staff-he-sold-tesla-stock-to-save-twitter.html https://www.cnbc.com/2022/11/10/elon-musk-tells-twitter-staf...