First off, they didn’t pay $44bn, that number includes a $13bn loan that Twitter took out to buy itself on behalf of the new owners. Musk paid ~$27 including fees, $20bn of this was Tesla stock (which since shortly after has been underperforming), then $5bn was other investors, including that Saudi Prince.
Edit: there was also Musk’s existing shares, which iirc was around $2bn, but I think that’s included in the $27bn - so his payment was something like $25bn, made up of $20bn in stock and $5bn in cash. /e
Musk is the majority owner, owning roughly around 26/31 of the value. However he isn’t the only shareholder.
In any case the leveraged buyout has been structured with the intent of killing the business. There was never any sincere hope of paying off the $13bn debt, and the intent was all but proven when they almost immediately stopped paying rent on their offices. This might not have been the goal along, but since Musk was forced to make the purchase that’s what it turned into.
Musk was forced to buy Twitter after accidentally promising to do so in legally binding terms. So, to a very great extent, there is no endgame, just the endless flailing of a rich kid who can’t comprehend just how much luck (rather than genius) got him where he is.
But, his supporters are primarily far right authoritarians, and his partners in Twitter include some extremely authoritarian regimes which have an interest in being able to suppress speech (and have had more help to do so with X compared to old Twitter). And his idea of free speech is being able to say whatever he likes without criticism, which means silencing any ideas that could possibly be construed as criticism, whether directed at him or not. The standard far right nonsense. If you point out the existence of racism you’re attacking white people. If you point out the existence of sexism you’re attacking men. If you choose not to advertise on a website promoting far right ideas, you’re attacking him personally.
Is he trying to turn Twitter into a more successful version of Gab or Truth Social, or is that just a by-product of his peculiar psyche? Is it with the intention of influencing elections, or is it just that his particular type of narcissism happens to be very useful to authoritarians? Are the ideas of the far right anything other than extreme narcissism anyway?
He’s not an evil genius but evil clowns can do a lot of damage too.
Endgame now is to kill off Twitter (and grassroots public forums in general) then replace them with right wing alternatives. Musk’s old friend Peter Thiel failed with Parler, with Twitter out the way they have a much stronger chance.
Meanwhile, as Twitter crashes and burns, they can experiment with ludicrous ideas. Most of them will fail, but anything they get away with becomes a template for whatever comes next.
Like I say, that wasn’t the plan all along - most likely he just wanted to manipulate the stock price and make a bit of profit - but that’s what this has turned into.
Pretty sure he’s paying a massive amount of interest on those loans, and he would have to liquidate his other assets before he could declare bankruptcy and erase any of the debt… The banks are probably laughing.
No that’s not how leveraged buyouts are structured. Musk isn’t on the hook for the loans, Twitter the company is (basically, Twitter took on debt to help buy its former shareholders out).
Lots of people lose their jobs, something that was once a public service is shut down… and Elon Musk’s reputation takes a minor hit that’s quickly forgotten.
He bought it so he’s the only shareholder. It’s not publicly traded anymore.
He’s not the only shareholder though.
First off, they didn’t pay $44bn, that number includes a $13bn loan that Twitter took out to buy itself on behalf of the new owners. Musk paid ~$27 including fees, $20bn of this was Tesla stock (which since shortly after has been underperforming), then $5bn was other investors, including that Saudi Prince.
Edit: there was also Musk’s existing shares, which iirc was around $2bn, but I think that’s included in the $27bn - so his payment was something like $25bn, made up of $20bn in stock and $5bn in cash. /e
Musk is the majority owner, owning roughly around 26/31 of the value. However he isn’t the only shareholder.
In any case the leveraged buyout has been structured with the intent of killing the business. There was never any sincere hope of paying off the $13bn debt, and the intent was all but proven when they almost immediately stopped paying rent on their offices. This might not have been the goal along, but since Musk was forced to make the purchase that’s what it turned into.
What do you think is the endgame here? Im so lost with regard to this whole storyline
It’s an interesting question.
Musk was forced to buy Twitter after accidentally promising to do so in legally binding terms. So, to a very great extent, there is no endgame, just the endless flailing of a rich kid who can’t comprehend just how much luck (rather than genius) got him where he is.
But, his supporters are primarily far right authoritarians, and his partners in Twitter include some extremely authoritarian regimes which have an interest in being able to suppress speech (and have had more help to do so with X compared to old Twitter). And his idea of free speech is being able to say whatever he likes without criticism, which means silencing any ideas that could possibly be construed as criticism, whether directed at him or not. The standard far right nonsense. If you point out the existence of racism you’re attacking white people. If you point out the existence of sexism you’re attacking men. If you choose not to advertise on a website promoting far right ideas, you’re attacking him personally.
Is he trying to turn Twitter into a more successful version of Gab or Truth Social, or is that just a by-product of his peculiar psyche? Is it with the intention of influencing elections, or is it just that his particular type of narcissism happens to be very useful to authoritarians? Are the ideas of the far right anything other than extreme narcissism anyway?
He’s not an evil genius but evil clowns can do a lot of damage too.
Endgame now is to kill off Twitter (and grassroots public forums in general) then replace them with right wing alternatives. Musk’s old friend Peter Thiel failed with Parler, with Twitter out the way they have a much stronger chance.
Meanwhile, as Twitter crashes and burns, they can experiment with ludicrous ideas. Most of them will fail, but anything they get away with becomes a template for whatever comes next.
Like I say, that wasn’t the plan all along - most likely he just wanted to manipulate the stock price and make a bit of profit - but that’s what this has turned into.
You think he’s aware of Lemmy? What do you think he thinks about us if so?
No idea really, but I think he generally dismisses the platform as a non-threat. Which is good, I don’t want him anywhere near it.
[excellent]
Ah, I didn’t realise that, thanks for the explanation.
The banks that finaced him are extremely furious though.
They should learn not to give someone free money just because they have money already.
Pretty sure he’s paying a massive amount of interest on those loans, and he would have to liquidate his other assets before he could declare bankruptcy and erase any of the debt… The banks are probably laughing.
No that’s not how leveraged buyouts are structured. Musk isn’t on the hook for the loans, Twitter the company is (basically, Twitter took on debt to help buy its former shareholders out).
Precisely, Musk has no personal risk for destroying Twitter. It’s absolutely fucking insane how much free money we give rich people.
Oh, and one of the reasons Twitter will inevitably fail is because of the massive interest payments the company accepted during the purchase.
Oh, no. Musk has $20b in Tesla stock guaranteeing the loans. He could lose control of Tesla if X fails.
So what happens then?
Lots of people lose their jobs, something that was once a public service is shut down… and Elon Musk’s reputation takes a minor hit that’s quickly forgotten.
If you owe the bank $10,000, you’re in trouble. If you owe the bank 10,000,000,000 dollars, the bank is in trouble.
If they aren’t, I am.
With debt is a bit different, as long as he pays it off I don’t think they care what he does with Twitter.
Ah, I thought he only acquired a controlling stake, rather than buying the full company outright.