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This called a "leveraged buyout". Everyone who learns about them is shocked, and they absolutely should be illegal, but they aren't. It's very common for compan
by slantedview 4y ago
This called a "leveraged buyout". Everyone who learns about them is shocked, and they absolutely should be illegal, but they aren't. It's very common for companies purchased in this way to go bankrupt, because the debt is too heavy a burden. Many name brand companies have gone down over the last decade because of this.
- TheLoafOfBread 4y agoLot of people who trusted Elon are going to lose their money then. Are we going to see consequences on Elon's well being?
- slantedview 4y agoThose people should have done more diligence. The text messages with Larry Ellison show he committed 1 billion dollars more or less on a whim. It's pretty easy to see now that buying Twitter and saddling it with debt was never going to work.
- saurik 4y agoYeah but like, if nothing else I imagine Musk is never going to get people to hand him a billion dollars on a whim again? I would think that screwing over this many investors simply has to cause a blow to one's credibility.
- deleted 4y ago[deleted]
- pmlnr 4y ago> Lot of people who trusted Elon are going to lose their money Good. Trust Elon the same way you'd trust Lex Luthor.
- deleted 4y ago[deleted]
- sgerenser 4y agoLast decade? Leveraged buyouts were a big thing in the 80s/90s, so this has been going on for over 30 years. This research showed that about 20% of LBOs resulted in bankruptcy: https://www.institutionalinvestor.com/article/b1gfygl4r8661f/LBOs-Make-More-Companies-Go-Bankrupt-Research-Shows#:~:text=According%20to%20researchers%20at%20California,during%20the%20same%20time%20period https://www.institutionalinvestor.com/article/b1gfygl4r8661f....