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Murtaza Hussain
@mazmhussain
“Loans that Elon Musk used to buy Twitter have become the worst merger-finance deal for banks since the financial crisis of 2008-09, according to a report. Seven banks involved in the deal, including the likes of Bank of America and Morgan Stanley, gave Musk’s holding company about $13 billion to take the social media giant private in 2022. According to The Wall Street Journal, banks who lend cash for takeovers typically try to sell the debt to other investors fast—but that has not happened with the Twitter deal. The Journal reports that banks haven’t been able to sell the debt without taking huge losses, predominantly because of the company’s poor financial performance. That means the loans have remained “hung,” or stuck, on banks’ balance sheets.“ If you recall rather than having some revolutionary plan Musk tried to back out of buying Twitter at the last moment. Now he’s stuck with a sinking ship. https://finance.yahoo.com/news/elon-musk-twitter-buyout-officially-161518178.html
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Dan Romero
@dwr.eth
Seems like a good deal for Musk, actually. They will have to write off the loans. Can probably renegotiate. They want the SpaceX / Starlink IPO.
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Murtaza Hussain
@mazmhussain
Interesting. He has a lot of assets so I figure he has other cards he can play with even if this one flops.
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youssef
@yssf.eth
good deal by selling spacex shares at a discount? maybe for the banks yeah
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Harpocryptes
@harpocryptes
Wouldn't it still be a loss for Musk because surely the banks have asked for collateral for the loan?
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