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To note, he didn't pay the whole forty-five billion dollars, investment banks have a part of that and are also eating dirt. I have no sympathy for them either,
by makeitdouble 4y ago
To note, he didn't pay the whole forty-five billion dollars, investment banks have a part of that and are also eating dirt. I have no sympathy for them either, but it brings more flavors to the whole thing.
[0] https://www.cnbc.com/2022/10/05/banks-financing-musks-twitter-deal-face-hefty-losses.html https://www.cnbc.com/2022/10/05/banks-financing-musks-twitte...
- Province1108 4y agoSecured as debt against his Tesla shares as collateral, which with the slide, means he has to put up more Tesla shares, causing a very nasty snowball effect
- kasey_junk 4y agoThat’s not true. Most of the debt was leveraged against Twitter, it’s a classic LBO. The investment banks have been attempting to change that to a margin loan against TSLA shares, because of course they are. They are holding effectively unsellable debt now.
- adrr 4y ago$13B of debt. https://www.nytimes.com/2022/10/30/technology/elon-musk-twitter-debt.html https://www.nytimes.com/2022/10/30/technology/elon-musk-twit...
- fooey 4y agoYeah, $13 billion being the generous side of the very most Twitter was ever actually worth, so that's the all the banks were willing to finance Musk himself is personally on the hook for $25 billion
- Zigurd 4y agoIFAIK the loans are secured by Twitter equity. Trouble is the loans add up to more than what Twitter is worth. The banks will have to write down the value of those loans. But the equity investors, including Elon, will get what scraps, if any, are left after creditors get paid.
- gmiller123456 4y agoMusk is still on the hook for the loans whether Twitter goes under or not. The danger they face is if Musk loses enough to not be able to cover the loans personally.