5 ms·

It’s going to be something like that. He bought it for 44 billion. That was mostly loans. Those loans are transferred to the company and the company pays intere

It’s going to be something like that. He bought it for 44 billion. That was mostly loans. Those loans are transferred to the company and the company pays interest on them.

jasode 4y ago
>He bought it for 44 billion. That was mostly loans. That's not true if media reports about the purchase was accurate. The debt financing was only $13 billion: https://www.google.com/search?q=musk+buys+twitter+%22%2413+billion%22+debt https://www.google.com/search?q=musk+buys+twitter+%22%2413+b... The more complete funding structure[1] looked like this: + $24 billion : Elon Musk personal wealth (e.g. selling some of his TESLA stock to raise money) + $7 billion : other equity investors (Saudi Arabia prince, Larry Ellison, etc.) + $13 billion: bank loans The Twitter puchase was mostly Elon's personal money (~54%) and not debt. [1] https://archive.ph/L6Mhv https://archive.ph/L6Mhv
- psychoslave 4y ago
  https://thepolicytimes.com/top-10-richest-people-worth-more-than-85-poorest-countries-gdp/?amp=1 https://thepolicytimes.com/top-10-richest-people-worth-more-... So, a handle of individuals can dwarf most countries GPD.
  - tazjin 4y ago
    And a couple of small countries can dwarf that entire group ;) https://www.nbim.no/ https://www.nbim.no/
    - saagarjha 4y ago
      That's only like $1 trillion, so just several of the world's richest people.
  - syntaxfree 4y ago
    GDP is a flow per year. Like the flow of water through a pipe. Wealth is a stock. Like the quantity of water in a barrel. Please pass this on when you see this cheap talking point, thanks.
EricLeer 4y ago
But who is issuing these loans? It should be pretty obvious that you would never see that money back right?
- stefan_ 4y ago
  The banks committed to the loans at the point of the takeover proposal (end of April). The macroeconomic lookout was better. Since then, just about every tech stock is down >20% and Musk has helpfully made unfounded accusations of bots and spam and whatnot in a pointless attempt to delay the acquisition, meaning the banks now have to try and unload these loans in a recession. I think last I heard they are giving a 40% discount or just keeping them on their books, hoping for a recovery as Musk trashes the company value further with every week that passes.
- throwuwu 4y ago
  Only if the people issuing the loans are basing their decisions off of media coverage.
- pjc50 4y ago
  Per link upthread: Bank of America, Barclays and Mitsubishi UFJ Financial Group, apparently. I've also heard Morgan Stanley mentioned.
  - dncornholio 4y ago
    Don't forget Qatar Holding and some oilprince from Saudi Arabia which are now also major shareholders

It’s going to be something like that. He bought it for 44 billion. That was mostly loans. Those loans are transferred to the company and the company pays interest on them.

jasode 4y ago

>He bought it for 44 billion. That was mostly loans. That's not true if media reports about the purchase was accurate. The debt financing was only $13 billion: https://www.google.com/search?q=musk+buys+twitter+%22%2413+billion%22+debt https://www.google.com/search?q=musk+buys+twitter+%22%2413+b... The more complete funding structure[1] looked like this: + $24 billion : Elon Musk personal wealth (e.g. selling some of his TESLA stock to raise money) + $7 billion : other equity investors (Saudi Arabia prince, Larry Ellison, etc.) + $13 billion: bank loans The Twitter puchase was mostly Elon's personal money (~54%) and not debt. [1] https://archive.ph/L6Mhv https://archive.ph/L6Mhv

psychoslave 4y ago
https://thepolicytimes.com/top-10-richest-people-worth-more-than-85-poorest-countries-gdp/?amp=1 https://thepolicytimes.com/top-10-richest-people-worth-more-... So, a handle of individuals can dwarf most countries GPD.
- tazjin 4y ago
  And a couple of small countries can dwarf that entire group ;) https://www.nbim.no/ https://www.nbim.no/
  - saagarjha 4y ago
    That's only like $1 trillion, so just several of the world's richest people.
- syntaxfree 4y ago
  GDP is a flow per year. Like the flow of water through a pipe. Wealth is a stock. Like the quantity of water in a barrel. Please pass this on when you see this cheap talking point, thanks.

EricLeer 4y ago

But who is issuing these loans? It should be pretty obvious that you would never see that money back right?

stefan_ 4y ago
The banks committed to the loans at the point of the takeover proposal (end of April). The macroeconomic lookout was better. Since then, just about every tech stock is down >20% and Musk has helpfully made unfounded accusations of bots and spam and whatnot in a pointless attempt to delay the acquisition, meaning the banks now have to try and unload these loans in a recession. I think last I heard they are giving a 40% discount or just keeping them on their books, hoping for a recovery as Musk trashes the company value further with every week that passes.
throwuwu 4y ago
Only if the people issuing the loans are basing their decisions off of media coverage.
pjc50 4y ago
Per link upthread: Bank of America, Barclays and Mitsubishi UFJ Financial Group, apparently. I've also heard Morgan Stanley mentioned.
- dncornholio 4y ago
  Don't forget Qatar Holding and some oilprince from Saudi Arabia which are now also major shareholders