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Musk Predicts Twitter's Profitability
- miohtama 4y agohttps://archive.ph/Ij10l https://archive.ph/Ij10l
- senttoschool 4y agoI think lost in all of this is the fact that Twitter had a very healthy business before the acquisition. Were they as successful as Meta? No. Were they sustainable and growing? Yes. It's the debt that Elon took up, which he unloaded onto the company balance sheet, to buy Twitter that ended up forcing Twitter to cut costs. If you read the Twitter comments whenever Musk blasts ex-Twitter employees, you'd think that Twitter prior to Musk was on the verge of bankruptcy. Quite the opposite. It's Musk's loans used to buy Twitter that is causing Twitter to be on the verge of bankruptcy. Everyone came out as a loser in the deal - except shareholders who sold Twitter way above its actual worth.
- miohtama 4y agoTwitter does not die out. Only the current equity holders will be wiped out as they need to be diluted more with additional funding rounds - probably at much lower valuation. Musk would not let Twitter to go bankcrupt as that would be a personal shame for him. But Musk will be a lot of poorer.
- BMc2020 4y agoSpeaking at a Morgan Stanley investor conference on Tuesday...Morgan Stanley led the syndicate of banks that loaned Twitter $13bn in November, which partly funded Musk’s takeover. Morgan Stanley provided the biggest chunk, about $3.5bn. The banks, which also include Barclays and Bank of America, face potentially large losses on the loans as they have been unable to sell the debt to investors due to uncertainty around Musk’s strategy to make Twitter profitable and pressure from rising interest rates. Morgan says, "Thanks for your report. Boys, take Mr. Musk out back and make sure he knows we want our money back, then let him go."
- rektide 4y agoI wish I wasnt so horrified that this could become true.