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So why did the bankers that finance the loan write it down by nearly 80%? They have access to all the financial data and yet decided to take a major loss on the

So why did the bankers that finance the loan write it down by nearly 80%? They have access to all the financial data and yet decided to take a major loss on their loan due to? From what it appears, Late 2024, Fidelity wrote down their loans by 79% [1] and then sold it early 2025 for 97 cents on the dollar (of the reduced value) [2]. I really struggle to believe that the banks are just taking this massive loss by mistake and that the value is actually still there. [1] - https://techcrunch.com/2024/09/29/fidelity-has-cut-xs-value-by-79-since-musk-purchase/ https://techcrunch.com/2024/09/29/fidelity-has-cut-xs-value-... [2] - https://nypost.com/2025/02/05/business/banks-sell-5-5b-of-x-loans-as-investors-bet-on-elon-musk-report/ https://nypost.com/2025/02/05/business/banks-sell-5-5b-of-x-...

jiveturkey 2y ago
I believe you are misreading the news. Fidelity was not part of the banks that sold their loans. Also it was a partial sale. The banks that sold their loans at just under their original valuation and profited, apparently. Original source reuters: https://www.reuters.com/business/finance/banks-sell-down-55-bln-musks-x-debt-investors-source-2025-02-05/ https://www.reuters.com/business/finance/banks-sell-down-55-... > At 97 cents, it is likely they sold at a profit, he added. I would guess that the 3 cents loss on the loan value still results in profit due to payments which amounted to more than 3 cents + loan expenses. Fidelity did write down their loan tremendously, but in October they increased it a bit. https://finance.yahoo.com/news/fidelity-boosts-valuations-stakes-elon-200448128.html https://finance.yahoo.com/news/fidelity-boosts-valuations-st... I don't agree with parent that xitter is worth what he paid for it, far from it. EBIDTA isn't the whole story. But things do look better than a few months ago. So far I haven't seen a viable contender for a xitter replacement. I can't believe I'm saying this but I'm actually rooting for Threads.
- unsnap_biceps 2y ago
  Ahh, thanks for the correction.

jiveturkey 2y ago

I believe you are misreading the news. Fidelity was not part of the banks that sold their loans. Also it was a partial sale. The banks that sold their loans at just under their original valuation and profited, apparently. Original source reuters: https://www.reuters.com/business/finance/banks-sell-down-55-bln-musks-x-debt-investors-source-2025-02-05/ https://www.reuters.com/business/finance/banks-sell-down-55-... > At 97 cents, it is likely they sold at a profit, he added. I would guess that the 3 cents loss on the loan value still results in profit due to payments which amounted to more than 3 cents + loan expenses. Fidelity did write down their loan tremendously, but in October they increased it a bit. https://finance.yahoo.com/news/fidelity-boosts-valuations-stakes-elon-200448128.html https://finance.yahoo.com/news/fidelity-boosts-valuations-st... I don't agree with parent that xitter is worth what he paid for it, far from it. EBIDTA isn't the whole story. But things do look better than a few months ago. So far I haven't seen a viable contender for a xitter replacement. I can't believe I'm saying this but I'm actually rooting for Threads.

unsnap_biceps 2y ago
Ahh, thanks for the correction.