3 ms·

Many have been estimating it at well under a $10 billion valuation. Elon Musk just became the first person to lose $200 Billion. I'd not be so quick to assume

• butlerm 4y ago
  If Twitter ceased to exist as a service then I agree creditors probably would not get paid or at least not in full. Liquidation isn't all that likely though. It is more likely that creditors would end up in control of the business, and that is worth something unless a Twitter style social media network is actually unsustainable as an economic enterprise.
  • rchaud 4y ago
    Creditors wouldn't care about controlling Twitter, as it generates no profits. They would have to find another buyer, and that would be hard going considering that Musk has chased off most of the big advertisers already.
• gamblor956 4y ago
  Deliberately under-capitalizing a privately-held corporation, as Elon appears to be doing, is one of the few exceptions to the corporate liability shield. (Rent costs were known at the time of acquisition, so not providing sufficient capital to pay those costs now that he owns the company can be used against him in bankruptcy court; the fact that Twitter now has ongoing loan payments of >$1 billion/annually does not help him because those liabilities were incurred as part of the acquisition). Or in other words...creditors might be able to go after Elon personally for Twitter's debts. It's rare, but it does happen, and it happens more frequently when one party tries to game the system.