Under pressure to generate revenue quickly, Twitter's new CEO considers ending free verification
  • Lovely_sombrero [he/him]
    ·
    2 years ago

    Twitter needs to pay $1bn per year just in interest on those loans. Also, the new number seems to be $20 per verified account.

    • panopticon [comrade/them]
      ·
      2 years ago

      So Twitter becomes the de facto debtor from the loans used for its own acquisition? Lololol

      • star_wraith [he/him]
        ·
        2 years ago

        Welcome to the world of mergers and acquisitions. I was involved in it for a minute and it was an important early step in my radicalization.

        • panopticon [comrade/them]
          ·
          2 years ago

          Truly amazing. It's like getting a mortgage but like, you just pay the down payment, some other guy has to pay off the rest. Also you get to collect rent the rest of the time. Lmao

          Also at the same time borrowing some money for the down payment. Lol

          • threshold [he/him]
            ·
            2 years ago

            wait, I kinda understand this but not really- is there an essay or youtube vid explaining this?

            • panopticon [comrade/them]
              ·
              2 years ago

              Well if I've understood correctly, Muskipoo got to buy Twitter with mostly borrowed money. He put in roughly $15B of his own money, and the rest was covered by loans that must now be paid off with revenue from Twitter...

      • SerLava [he/him]
        ·
        2 years ago

        YEP! That's very common! Toys R Us was profitable and then got bought and shut down because it couldn't pay the debts of the people who bought it!

      • Lovely_sombrero [he/him]
        ·
        2 years ago

        Elon used like ~$15bn of his own money. The Saudis "gave" around $5bn (gave = Elon didn't buy their shares, so they are still partial owners). The rest is ~$35bn in financing that Twitter now owes to the banks.

    • Orannis62 [ze/hir]
      ·
      2 years ago

      At $20/month, it'd still take him 183 years

      Still not taking the loans into account