This is a most excellent place for technology news and articles.
The sad thing is this guy will light $44B on fire, probably lose 99% of it, and not even feel it.
He'll feel it because a lot of the deal was financed off of his Tesla stock. It isn't that Musk will lose money from Twitter; he'll lose some control over Tesla. Worse, it could push Tesla's stock price down, which may be an issue as a lot of people shorted Tesla's stock.
Yep.
And it is a lot of Tesla stock he had to put to cover that much.
The banks won't hold it or even accept it directly tho.
Musk would have to sell all that stock, which would crash the stock price. Meaning he has to come up with the money from somewhere else.
The whole thing is a house of cards and has a chance to completely wipe him out. He's over leveraged, it's not that complicated.
$33 Billion.
$13 Billion (of the $46 Billion deal) was loans from banks to Twitter.
-$2 Billion of debt IIRC before the deal + $13 Billion from banks + $33 Billion from Elon Musk == $44 Billion (46 billion - 2 billion prior debts).
protip: corporate debt is not the same thing as out of pocket debt, no one is understanding this lol
Maybe rather than "lol"ing at people for not understanding something, you could explain the important differences ?
Help them understand by explaining it, then.
On the next season of The Sopranos reboot:
Since the day he proposed taking over, Musk has demonstrated no interest or expertise in how such a service might enhance the lives of its users or at least make money to stay afloat. He’s run it on debt – debt accrued from some of the most dangerous people in the world.
With the new debt Musk took on to complete the purchase of Twitter stock and take the company private, the company’s annual debt payments ballooned to about $1bn a year. Yet the company’s operations in 2021 generated about $630m in cashflow.
Get your popcorn ready.
Oh no!
anyway
Is it, though? I'm still waiting for the guys I'm following to move on, like Scott Manley for example.
Maybe it's time to move on from creators who insist you use a dieing platform with a shitty user experience? The medium is the message.
Pretty much this. The whole of (popular American) sports is entrenched in Twitter. They aren’t going anywhere unless forced to do so.
My kid plays football and has aspirations to play in college. Every person has told him to build a prescience on Twitter as that is what all the recruiting coaches use and look at.
I think tech people don’t understand how social media supports non-tech areas.
Yes. Twitter's problems are really bad right now. Musk has alienated advertised and Twitter isn't paying important bills like cloud housing.
The platform may have willing users, but that doesn't matter if Twitter can't operate.
Threads is the only thing I've seen with enough name recognition to get those big, non-tech oriented accounts to move. I've seen so many people I follow on Twitter post about Threads in the last day or two that it is insane. The only thing close to that hype is Bluesky, but it being invite only now is limiting its growth.
Can't tank fast enough, imo.
It just baffles me why he would buy Twitter in the first place and even more so why he paid what he did for it. PayPal -> Tesla -> SpaceX -> Twitter. How does that make any sense in any way. So there's that from the start, but then why is he firing a torpedo into it. Was his secret plan to bulldoze Twitter from the start? That's a lot to pay for revenge.
The short of it:
He made an offhand comment about buying twitter as a sort of "joke" but was then forced to go through with it thanks to the legal ramifications of said joke.
Adios!
The money quote:
While Musk tried his best to distract critics by blaming artificial intelligence companies allegedly scraping Twitter, a glitch in Twitter itself meant its computers were demanding data from its servers in an infinite loop.
So Twitter was killing itself. It seems to be a mercy killing.
Good article.
Good.
