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Musk’s style is “bad for investors, good for Musk” until Musk is the investor and decides to pay a large multiple of a company’s real value on a whim. Now he ne
by matthewdgreen 4y ago
Musk’s style is “bad for investors, good for Musk” until Musk is the investor and decides to pay a large multiple of a company’s real value on a whim. Now he needs Twitter to be profitable enough to cover the debt, while also preserving his reputation with future investors in his other companies.
- Zigurd 4y agoWon't happen. $44B total. $14B in debt. Twitter worth under $10B, probably between $0-5B. Creditors get paid first. Elon's money is gone forever. The hole is too deep. The likeliest outcome is Elon hands it to the banks and says "Oops. Uh... good luck?"
- morelisp 4y agoIf I was Parag I'd already be putting my new pitch and executive team together for when the banks call.
- s1artibartfast 4y ago44 billion isn't that crazy. Twitter needs to make 2B/year to have a p/e of 20. Twitter revenue was ~5B for the year before takeover. If Elon can keep costs <3 billion and bring back the add revenue, that would work. Firing 80% of workers goes a long way to cutting costs. Alternatively, if he can somehow grow revenue, that would be another solution.
- Zigurd 4y agoHe is on a rocket sled in the wrong direction for revenue. That's part of the hole, not part of a ladder.
- s1artibartfast 4y agoI don't disagree with the direction of revenue or the size of the hole. I just don't think it is impossible to get the revenue back.