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> Google Cloud isn’t worried that Twitter is broke Twitter is broke. "The company" spends more than it collects in revenue, and it has massive debts - the inte
by blitzar 3y ago
> Google Cloud isn’t worried that Twitter is broke
Twitter is broke. "The company" spends more than it collects in revenue, and it has massive debts - the interest on which alone is greater than the revenue it collects. Sure it can borrow more money, from its shareholders if it has to, but even that tap can dry up.
- suggala 3y agoIf you liquidate in market half the companies in SP500 will seem like they are broke even though by definition you need to be profitable to get into SP500. But that is not how companies are valued at. They also are valued with potential. “Twitter is broke” is a drama created by Musk basically is a reason he says for all the actions. Share holder tap isn’t dried up. He just need to open the tap with lower share price probably less that quarter a price he actually bought it for. Nothing is in dooms day situation.
- JonChesterfield 3y agoRevenue below interest due on debts sounds unambiguously insolvent. I've tried to verify this claim and mostly discovered stuff that makes no sense to me. https://www.ft.com/content/25f67d89-2940-43b9-9a42-bfc34d262631 https://www.ft.com/content/25f67d89-2940-43b9-9a42-bfc34d262... is one of the clearer things. Twitter owes ~$12B from when it was acquired by Elon. Somehow twitter owes this, not Elon. How is that a thing? Twitter put itself ruinously in debt in order to hand over control to someone else.