Nearly two years after Elon Musk’s acquisition, X’s business is still struggling to climb out of the deep hole it fell into under his ownership.
The $13 billion that Elon Musk borrowed to buy Twitter has turned into the worst merger-finance deal for banks since the 2008-09 financial crisis.
The seven banks involved in the deal, including Morgan Stanley and Bank of America, lent the money to the billionaire’s holding company to take the social-media platform, now named X, private in October 2022. Banks that provide loans for takeovers generally sell the debt quickly to other investors to get it off their balance sheets, making money on fees.
The losses on banks’ balance sheets from the deal are also biting into potential bonuses for some bankers, the report said.
They should just be fired. This wasn’t a deal that looked like it had good potential but didn’t pan out. It was obviously a bad buy right from the start and the guy who was going to run the private enterprise was both spread too thin to run it well, was increasingly erratic in his behavior, and wasn’t any good at the business he was taking over. Everyone knew it was a bad deal at the time.
Yes, but have you considered: Tesla line go up. Elon CEO. When Elon CEO, Twitter line go up. Logic.
Good fuck em. As if they totally havent made back any loss in recent years
You sweet summer child… You think this will affect anyone at the top? All the rich people will walk away unaffected as more layoffs roll down or they borrow from the gov/tax payers.
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MBFC: Right-Center - Credibility: High - Factual Reporting: Mostly Factual - United States of America
Wikipedia about this sourceI thought the mod thread about this bot resoundingly agreed that it should go away?
OP did you forget to link the article?
Huh, that’s strange. Let me put it up now; thanks!
Cheers!
Needed to unpaywall it, so here’s an archive link for anyone who needs the same: https://archive.is/hokvj
Edit: hmm there isn’t actually much more there
Marketwatch link that isn’t paywalled:
Guess the saying is true, if you owe the bank $1000, that’s your problem. If you owe the bank $13 billion, its the bank’s problem.
Hmm… How do I get them to lend me $13B??
The key is to have $60 billion.
The key is to become famous and create hype around your gambling bet so other people artificially inflate the value so that you have a “theoretical” $60 billion.
- Be rich
- Don’t be poor
Align with the value of international finance, e.g. think that the poor exist to be exploited for greater inequality.
They already covered that with 1. And 2.
- Be rich and get richer
- Don’t be poor and punish the poor for being poor
Shit, best I can do is
be poor and punish other poors for being poorAh the local redneck business owner. I lucked into a niche where I can sit back and let some country boys work and print money for me. I’ll look down on everyone else in town from my swanky nouveau riche cowboy boots.
that is awesome
This makes me happy.
I can see a very real scenario where Drump gets elected, appoints Moron Musk as treasury secretary, and magically wipes off his Xitter debt never to be heard again
I’d say he can’t do that (the debt part) but apparently the US supreme court thinks a president can do whatever the fuck they want, so who knows at this point.
At the time, Musk himself had complained that the price for Twitter was too high, but he decided to go ahead with the deal after waffling over it for a while.
Mmmmmmmmm that’s not how I’d describe it, Marketwatch.
Guess they didn’t want to say that Musk shit posted so hard that he ended up being forced to buy the company.
I mean, he did have to decide if he wanted to pay the money and take the company, or just pay the money, as he’d signed a solid agreement. So there was a choice.
I’m retrospect, paying the money and not taking the company might actually have been the more sound financial decision.
Bank of America and Morgan Stanley commanded the top two spots in the U.S. leveraged-finance investment banking league tables in 2021 and 2022 during some quarters before Musk bought Twitter, according to data from Dealogic. In 2023 and 2024, JPMorgan and Goldman Sachs—which didn’t finance the Twitter deal—have held the top spots.
He’s so toxic that being involved with him can unseat you from being the top two in your industry. This will make people a bit more hesitant to get into bed with him (gross) in the future.
Barclays’s top investment bankers on the mergers and acquisitions team were told at a New York dinner early last year that compensation for everyone in the room would be cut by at least 40% from the prior year. The bank had several hung deals hurting its performance but X was by far the largest, according to people familiar with the situation.
When you’re slashing compensation for your people, especially the ones who bring in real money, you know it’s serious. I’m happy to see X crash and burn and pull down bankers with it. Dumbass mf.
“since the financial crisis” - You’ll have to be more specific than that 🥲
2008, obv
Circa 1177 BCE. Sea Peoples ruin everything.
Now now… I agree that the Peleset are all awful, but what have the Weshesh ever done to you?
Burning olive oil can’t melt copper bars! The attack on the twin ziggurats was an inside job masterminded by the King of Uruk, Gilga W Mesh!
We hic! Needsh to g’hic! Wesh…eshh
okay but he blames advertisers for ruining the company
Narcissists will never blame themselves for their screw ups.
This is why I stick with credit unions.
