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He could but does he really want to go all-all-all in?
by jasmer 4y ago
He could but does he really want to go all-all-all in?
- dragontamer 4y agoHe's already $33 Billion in the hole. what's another $8ish Billion to make it possible for Twitter to actually become profitable? The $1.3 Billion/year interest payment has to be the biggest existential threat to Twitter. Besides, going from $13 Billion in debt to $8ish Billion is a smoother $5 Billion in basically profits. Twitter has to pay those debts back eventually, why not right now when the debt is so so so cheap?
- jasmer 4y agoBecause it's a lot of money and I suggest he's not able to conjure up billions - after taxes especially - quite so easily. Though as you suggest it is a problem not just an opportunity and his hand might be forced. Financing operations aside, it does not look good for him, and the dynamics that made Musk into what he is ... well ... none of that exists at Twitter really. Other than very direct leverage he has. I feel this will be a bridge too far, he's Putin invading Ukraine and most likely outcome is some kind of 'net netural' that he will spin as a victory. But who knows? Probably not even him at this point.
- belval 4y ago> he's Putin invading Ukraine I get that he's not the most tasteful individual out there, but this seems like a questionable parallel to draw.
- miohtama 4y ago$1.3B/year interest payments is still likely to go up if the interest rates keep raising.