An estimated $4 to $20 billion in value, what is he thinking?

  • TWeaK@lemm.ee
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    1 year ago

    Musk did not pay $44 billion to buy Twitter. He paid $26 billion, underwritten by stock in Tesla, which subsequently lost significant value. $5 billion was from other investors including the Saudi Prince.

    The remaining $13 billion was a loan Twitter took out to buy itself on Musk’s behalf. Even before Musk started tanking the revenue, Twitter could not afford that debt - the interest alone was comparible to its revenue. That debt is probably about what Twitter is worth right now after the name change, making it pretty much unviable as a business.

    You don’t have to look at Musk’s antics to conclude that the intention was to kill the company. You only have to look at the financials.

    Leveraged buyouts almost always lead to the business closing. It’s how Toys R Us, and many other staple brands, were brought down.

    • FlowVoid@midwest.social
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      1 year ago

      Tesla stock is worth more now than when Twitter went private.

      And if Musk intended to kill Twitter, he would have simply shut down the servers last year.

      What you are seeing is the result of mistakes, not a conspiracy.