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It literally is. That's how every debt-financed corporate acquisition works. Twitter is paying this debt, not Elon from his pocket. https://www.wsj.com/article

• ilyt 4y ago
  So if it goes bankrupt what happens ? None of his assets aside Twitter gets seized ?
  • plorkyeran 4y ago
    If Twitter fails to make payments on its debt then Morgan Stanley will become the proud new owner of Twitter. It is similar in structure to a mortgage on a house.
    • midoridensha 4y ago
      That seems like a really stupid loan to make then. If Twitter fails, it becomes mostly worthless, much like MySpace today. Why would a bank make such a loan? (It does seem like bankers are pretty stupid these days though, or just don't care because it's not their money.)
      • robryan 4y ago
        They set an interest rate in line with the risk that they are taking on. It seems like a pretty unlikely scenario where Twitter is worth nothing, if it goes bankrupt there can probably be a fairly sizable sale to recoup some value. Allowing so long for the deal to close may have been a mistake due to what happened in the market between when they agreed to terms and when the deal closed.
  • KptMarchewa 4y ago
    He already paid 20B+ of his own money. Debt is only part of financing, AFAIK ~13B.