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.
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.
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.
Oh, no. Musk has $20b in Tesla stock guaranteeing the loans. He could lose control of Tesla if X fails.