this post was submitted on 21 Aug 2024
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Economics

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Elon Musk's Twitter takeover has ended up as the worst buyout deal for banks since the financial crisis (www.businessinsider.com)
submitted 2 months ago by MicroWave to c/economics
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  • Elon Musk's Twitter acquisition ended up being the worst financing deal for banks since 2008, the WSJ said.
  • The $13 billion in loans Musk took out have been stuck on banks' balance sheets.
  • The loans have cut into pay for bankers and lenders' ability to finance other deals, the Journal reported.
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[–] Blue_Morpho 19 points 2 months ago (1 children)

I wonder what part of the deal is causing a loss? A loan under no normal circumstances can lose money. They gave Musk $13B that he had to pay back with interest. As collateral he had to put up Tesla stock. How can that lose money?