![]() ![]() But the banks also miscalculated by putting a limit on how high those rates could rise-the foot fault that gives Musk his leverage. ![]() In the Twitter financing, Musk took a flyer that backfired by tying the debt to variable rates. ![]() Twitter’s interest burden looked at first looked possibly manageable. Musk’s $22.9 billion stake equates to an ownership stake of nearly 74%. In the final tally, Twitter’s capital profile comprises $13 billion in debt and $31 billion in equity. After the closing, Musk apparently tapped Twitter’s cash trove for $2.5 billion of the $5.3 billion used to pay off its pre-purchase debt, reducing his full investment from the original $25.4 billion to $22.9 billion. Since the lenders and outside stockholders furnished $21.1 billion, Musk’s net investment accounted for the difference, or $22.9 billion. Why does this follow the math? Neither Musk nor the banks have ever refuted the widespread news that he, the banks and co-investors expended, all-in, $44 billion for Twitter. Around the same time, the world’s richest person raised $3.95 billion from his Tesla holdings.īut it also appears that Musk recouped a big chunk of the $25.4 billion he’d paid on Oct. The Wall Street Journal revealed that October, just before the deal closed near the month’s end, Musk borrowed $1 billion from SpaceX. It appears that to meet that $25.4 billion cash requirement, he had to raise billions more, and in a hurry, than he’d secured in the previous several months selling Tesla shares. Hence, the non-Musk funding accounted for $21.1 billion of the cash submitted at closing.īut we know that Musk initially provided $25.4 billion of his own money-$4 billion from putting shares he’d acquired into new Twitter stock, and $21 billion in fresh funds. Among the other Oracle chief and former Tesla director Larry Ellison ($1 billion), venture fund Sequoia Capital ($800 million), and crypto exchange Binance ($500 million). Leading the roster were Prince Al Waleed of Saudi Arabia and cofounder and former CEO Jack Dorsey, who rolled prior Twitter stakes worth around $3 billion into the Musk purchase. Some advertisers even feared he would remove advertising from the platform altogether, the Journal reported.Of that number, the banks supplied $13 billion, and Musk raised approximately $8.140 billion by Fortune‘s estimates from 22 known equity co-investors, or around $1 billion more than the $7.1 billion that’s been widely reported. ![]() The Wall Street Journal reported Thursday that many advertisers are concerned about Musk's speculated plans to scale back content moderation and potential conflicts of interest with auto advertising, since he is also the CEO of Tesla. Musk said Twitter should be a platform that both follows the laws of the land and is "warm and welcoming to all, where you can choose your desired experience according to your preferences." I did it to try to help humanity, whom I love." Musk added that he did not buy Twitter "to make more money. "There is currently great danger that social media will splinter into far right wing and far left wing echo chambers that generate more hate and divide our society." "The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence," he wrote. Musk told advertisers in the note that most of the speculation about why he bought the platform "has been wrong." The statement pushes back on the fear some progressives have expressed that a Musk-run Twitter would become overrun by hate speech and misinformation since Musk has said he would pull back on content moderation. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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