3 ms·

Will Elon Lose Control of Twitter?

8 points by donohoe 3y ago

infamouscow 3y ago
No. https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headlines https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headline...
- ArunRaja 3y ago
  Savage
  - 3cats-in-a-coat 3y ago
    [dead]
slimebot80 3y ago
Elon Musk is in control of Twitter?
babelthuap 3y ago
He's not done getting control having recently found a hidden algorithm throttling down his own tweets so no. He's getting more control.
rsynnott 3y ago
... Seemingly no-one glanced at the article _at all_? It's about whether Twitter's creditors will put it into involuntary bankruptcy, not whether Saint Car controls it in some more abstract sense.
- Zigurd 3y ago
  That's a pity because this is the best analysis of why Elon is stiffing small-time debts, and the possible consequences. It comes down to trying to scare the creditors into selling their loans to Elon at a discount. That could fail if the creditors, instead, push Twitter into involuntary bankruptcy. Or the current creditors could sell the debt to distressed-debt specialists. In which case the creditors end up owning and controlling Twitter. There is a BFR-load of ego at stake, too. The article doesn't go into it beyond this: "If Elon buys the debt, then he can keep control of Twitter for whatever perverse reasons he has for still wanting to own this pig." But it would also embarrass Elon in front of his fellow equity holders, who can still cling to the fiction their shares are worth something until the creditors get frisky.
- hn1986 3y ago
  from the article. > So what is Elon’s game here? Perhaps, as I have written before, he is essentially cosplaying as a bankrupt entity—by not paying his bills as they become due—so that he can scare the big Wall Street banks that own Twitter’s $13 billion of debt to sell it to him at a steep discount, perhaps at a price even lower than the 50 cents on the dollar it would probably trade for now, if marketed to investors. Not that Elon necessarily wants to buy the debt, even at a big discount. But this may be the path of least resistance if he wants to prevent the company from falling into the hands of the voracious distressed debt community on Wall Street who are in the “loan-to-own” business. > If the debt gets bought by the likes of DoubleLine Capital, or Apollo, or Oaktree Capital, then all bets are off for Elon and he will lose control of Twitter. I have little reason to think Musk will lose control. It's much too valuable (politically, socially, and for his business) even if he keeps losing money.

8 points by donohoe 3y ago

No. https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headlines https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headline...

ArunRaja 3y ago
Savage
- 3cats-in-a-coat 3y ago
  [dead]

slimebot80 3y ago

Elon Musk is in control of Twitter?

babelthuap 3y ago

He's not done getting control having recently found a hidden algorithm throttling down his own tweets so no. He's getting more control.

rsynnott 3y ago

... Seemingly no-one glanced at the article _at all_? It's about whether Twitter's creditors will put it into involuntary bankruptcy, not whether Saint Car controls it in some more abstract sense.

Zigurd 3y ago
That's a pity because this is the best analysis of why Elon is stiffing small-time debts, and the possible consequences. It comes down to trying to scare the creditors into selling their loans to Elon at a discount. That could fail if the creditors, instead, push Twitter into involuntary bankruptcy. Or the current creditors could sell the debt to distressed-debt specialists. In which case the creditors end up owning and controlling Twitter. There is a BFR-load of ego at stake, too. The article doesn't go into it beyond this: "If Elon buys the debt, then he can keep control of Twitter for whatever perverse reasons he has for still wanting to own this pig." But it would also embarrass Elon in front of his fellow equity holders, who can still cling to the fiction their shares are worth something until the creditors get frisky.
hn1986 3y ago
from the article. > So what is Elon’s game here? Perhaps, as I have written before, he is essentially cosplaying as a bankrupt entity—by not paying his bills as they become due—so that he can scare the big Wall Street banks that own Twitter’s $13 billion of debt to sell it to him at a steep discount, perhaps at a price even lower than the 50 cents on the dollar it would probably trade for now, if marketed to investors. Not that Elon necessarily wants to buy the debt, even at a big discount. But this may be the path of least resistance if he wants to prevent the company from falling into the hands of the voracious distressed debt community on Wall Street who are in the “loan-to-own” business. > If the debt gets bought by the likes of DoubleLine Capital, or Apollo, or Oaktree Capital, then all bets are off for Elon and he will lose control of Twitter. I have little reason to think Musk will lose control. It's much too valuable (politically, socially, and for his business) even if he keeps losing money.