Banks—Morgan Stanley, Bank of America, Barclays and others—that helped Elon Musk buy Twitter are set to sell off the debt incurred by the tech billionaire for the purchase. The Wall Street seems eager to exit the controversial deal that financed the social media company’s buyout.
Reportedly, the banks have scheduled a $3 billion debt sale for next week; they plan to offload senior debt for 90 to 95 cents on the dollar, while keeping more junior stakes. In an email to staff earlier this month, Musk acknowledged that X is “barely breaking even.”
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Musk’s acquisition of Twitter in October 2022 for $44 billion marked a significant moment in tech and social media history. Musk, the CEO of Tesla and SpaceX, initially made waves with his outspoken criticisms of Twitter’s management and policies, particularly around free speech and content moderation. After a back-and-forth regarding the deal’s terms and some uncertainty, he eventually completed the purchase.
Banks expect to get 90 to 95 cents on the dollar, according to the Wall Street Journal, which first reported preparations for the sale.
Musk denied the WSJ report as “false,” posting on X that the newspaper was “lying.”
X, formerly known as Twitter, launched in 2006 by Jack Dorsey, Biz Stone, and Evan Williams, quickly became one of the most influential social media platforms in the world. Known for its 280-character limit per tweet, it allows users to share thoughts, news, and opinions in real-time.
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Over the years, Twitter has played a major role in shaping public discourse, enabling political movements, spreading breaking news, and fostering viral trends.
Twitter is widely used by celebrities, politicians, and businesses to communicate directly with their audiences. Its open nature has facilitated conversations on various topics, but it has also faced criticism for issues related to misinformation, harassment, and online hate speech. Despite this, Twitter remains a major platform for sharing information and engaging in real-time conversations.
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