Mr. Musk may pay the margin loan out of his own account, or Twitter may use cash from the business to cover the interest expense. Twitter and Mr. Musk didn’t immediately respond to requests for comment. Morgan Stanley, Bank of America and Barclays declined to comment. MUFG didn’t immediately respond to a request for comment.
At present, Twitter has a little more than $5 billion in debt, mostly in the form of low-interest convertible bonds and unsecured debt, according to a recent offering memorandum. If shareholders agree to take Twitter private, the company will need to pay back all of its existing debt before this new debt is added to its books, analysts said. The company’s bond prices have rallied on news of Mr. Musk’s planned buyout to around 102 cents on the dollar.
Twitter has been striving to build out its advertising revenue under CEO Parag Agrawal, but it is unclear if that vision will continue.
Social media is being sold already, you have to pay to get extra features
Only negative feedback ? No positive input? Aaah, you thinking small.
They gon have to figure out a proper revenue model with the quickness…
Interesting.
We all know he will turn it into a gold mind.
Remember Tesla is a brand. And when a brand becomes affiliated with empowering despots like Trump and the Insurrection—while pretending to defend free speech—there are consequences. Welcome to capitalism.
I remember the same thing being said when Tesla was around a 100-something a share… I remember worse things being said when the shorts angled to take Tesla off the exchange. Twitter is going to do just fine. In all probability Twitter will be filled with tiger blood & winning!
So? You really think Elon doesn’t have enough money to make the payments?
Jojojo
Everyone see thro the fed. They’re not going to raise rates that far. We’ll be in a full blown recession before the fed raises rates. This can can’t be kicked anymore. Low interest rates plus ever growing inflation is the future.