• 3 Posts
  • 236 Comments
Joined 1 year ago
cake
Cake day: June 12th, 2023

help-circle












  • ok, so that described strategy sounds almost like something that should be illegal. in fact it sounds very similarly to lot of stories that were happening here in central europe after fall of communism, when the state-owned companies were changing ownership and ending up in personal hands. lot of these stories did not end up well.

    but no matter what, that strategy only covered part of the acquisition price, even according to these articles, so that is still not a reason for musk to intentionally drive the company into the ground.




  • yeah, guess what, this is not your average home mortgage :D it is more complicated, but short story is yes, musk paid with his own money and money backed by his other property.

    and no matter what, it still doesn’t explain this nonsense you said:

    I think the point is to destroy it so he doesn’t have to pay back what he borrowed to buy it.

    not sure where this absurd idea of yours comes from, but it is still nonsense. no matter where he borrowed the money from, he has to return them, even if he drowns the twitter in gasoline and then set it on fire.


    On April 20, Musk disclosed that he had secured financing provided by a group of banks led by Morgan Stanley, Bank of America, Barclays, MUFG, Société Générale, Mizuho Bank, and BNP Paribas, for a potential tender offer to acquire the company.[27][28] The funding included $7 billion of senior secured bank loans; $6 billion in subordinated debt; $6.25 billion in bank loans to Musk personally, secured by $62.5 billion of his Tesla stock; $20 billion in cash equity from Musk, to be provided by sales of Tesla stock and other assets; and $7.1 billion in equity from 19 independent investors.[29][30][31]

    https://en.wikipedia.org/wiki/Acquisition_of_Twitter_by_Elon_Musk




  • More to the point though, I do wonder why he didn’t just pay the billion dollars to get out of the deal

    I don’t know that he’s not in it for the money.

    your first sentence explains he is not in it for money, if money were the concern, eating the 1b fine would be logical thing to do (i am not fact checking that 1b piece of information, i trust you on this).

    with his 270 billion net worth - which by the way includes assets not necessarily liquid cash

    that’s how it works, no one has 270 billion in cash

    I think the point is to destroy it so he doesn’t have to pay back what he borrowed to buy it.

    that doesn’t make sense, destroying twitter doesn’t absolve him of obligation to return money he borrowed.


  • it’s just that he could take big risks

    yes, that is definitely part of his success. and since this strategy got him to position of richest person in the world, it is pretty clear that “genius at losing money” is not really accurate description of situation.

    as for twitter, he clearly is not in it for the money, otherwise he wouldn’t be there to begin with. he originally hoped to buy position of cheered and admired hero and when he failed, he settled for a position of hated douchebag. infamous still means people know you, i guess 🤷‍♂️