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They are implying Twitter will default on their debt and the debt owners will take what's left of the companies assets - the company.

• slt2021 3y ago
  Elon’s titter shares are backed with his assets (mainly Tesla stock), so I dont see how titter will default unless tesla stock gets heavy heavy beating (which it surprisingly endured pretty well so far) Twitter has not defaulted so far because elon can just pour money in and cut expenses - which he has been doing since taking over
  • aorloff 3y ago
    It's hard to build a revenue stream by cutting expenses.
  • HWR_14 3y ago
    No, Twitters 12.5 billion in debt is backed by Twitter. Money that Elon personally borrowed to buy Twitter, but Twitter is not on the hook for, is backed by Tesla. Elon defaulting won't affect his ownership of Twitter (because he pledged Tesla shares) and Twitter going to zero won't affect Elons other investments (unless he voluntarily adds more money to Twitter).