According to the Wall Street Journal, the banks that lent a total of $13 billion to Elon Musk’s hobby are in a state of failure worth $2 billion.
Elon Musk He works tirelessly to turn his former Twitter into an excellent app, but at the moment it looks like it will end up being a toothpick, if he doesn’t mess it up. the Axios reports The number of visitors to the social site called While the number of app downloads decreased from 16 million in May to 10 million now.
So, according to the signs, neither the name change nor the blue ticks distributed for money, the chaotic process of the platform in all respects and the possibility of introducing a paywall in general were successful, although the structure, according to the comments, is the creation of a “super app” similar to Tencent’s China’s WeChat will not be simple, however, within Western usage habits and regulatory frameworks. Through the Wall Street Journal He expressed this in numbers as well The deep journey of Twitter-X: According to the newspaper, it is expected that banks will be able to sell their accumulated debt by acquiring the company at a loss of 15 percent.
The foreseeable future does not look good either
Although Musk had to dig into his own money to acquire Twitter last year, he also relied on investors and traditional financial institutions to complete the deal. The seven banks that loaned Musk a total of $13 billion to finance his $44 billion gamble expect to lose nearly $2 billion, Wall Street Journal sources reported. According to them, Morgan Stanley, Bank of America or Barclays are preparing to settle the matter by the beginning of September, while so far they are only trying to get rid of a small part of the debt.
Their prospects are not the best, meaning that if a company gets a poor credit rating, they won’t stand in line to repay their debts either, but the longer the banks hold on to them, the more unfavorable their position becomes. According to the Wall Street Journal, X currently represents one of the largest deals that could result in losses to creditors after a failed takeover. And since the vast majority of Twitter-X’s largest clients have also suspended advertising since last year, fewer and fewer people believe Musk or Linda Yaccarino CEO that the company will be really profitable next year.