Under pressure to generate revenue quickly, Twitter's new CEO considers ending free verification
  • 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.