165
Twitter was locked in a chaotic doom loop. Now it’s on the verge of collapse | Siva Vaidhyanathan
(www.theguardian.com)
this post was submitted on 05 Jul 2023
165 points (95.6% liked)
Technology
59600 readers
4201 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
The sad thing is this guy will light $44B on fire, probably lose 99% of it, and not even feel it.
He'll feel it because a lot of the deal was financed off of his Tesla stock. It isn't that Musk will lose money from Twitter; he'll lose some control over Tesla. Worse, it could push Tesla's stock price down, which may be an issue as a lot of people shorted Tesla's stock.
Yep.
And it is a lot of Tesla stock he had to put to cover that much.
The banks won't hold it or even accept it directly tho.
Musk would have to sell all that stock, which would crash the stock price. Meaning he has to come up with the money from somewhere else.
The whole thing is a house of cards and has a chance to completely wipe him out. He's over leveraged, it's not that complicated.
$33 Billion.
$13 Billion (of the $46 Billion deal) was loans from banks to Twitter.
-$2 Billion of debt IIRC before the deal + $13 Billion from banks + $33 Billion from Elon Musk == $44 Billion (46 billion - 2 billion prior debts).
protip: corporate debt is not the same thing as out of pocket debt, no one is understanding this lol
Maybe rather than "lol"ing at people for not understanding something, you could explain the important differences ?
Help them understand by explaining it, then.