Economics

465 readers

237 users here now

founded 2 years ago

132

Elon Musk's Twitter takeover has ended up as the worst buyout deal for banks since the financial crisis (www.businessinsider.com)

submitted 4 months ago by MicroWave to c/economics

23 comments fedilink hide all child comments

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.

you are viewing a single comment's thread
view the rest of the comments

[–] AA5B 1 points 3 months ago (1 children)

The bank cares because

he can’t sell $13B in stock without crashing the value - he can’t pay it off fast
someone with that much ownership has serious restrictions on how they can sell. Again, limiting ability to pay off loans
banks generally don’t keep loans, they originate and sell. But no one will buy with those restrictions

[–] Blue_Morpho 1 points 3 months ago

It was 2 years ago. Interest payments are continuous, not sudden. If he owed money he would sell a little every month to pay the loan. Yes it would lower the price. The bank doesn't care, they are being paid.

Yes large ownership sales are filed quarterly. It's not a surprise loan. The payments are due monthly.