I don't know much of the financial details of how this would work exactly, but it sure seems like ELMU is playing with some serious fire by going ahead with the Twitter purchase to save face, when paying to not do the deal was likely the much more prudent move

  • culpritus [any]
    hexagon
    ·
    edit-2
    2 years ago

    looks like I had bad and vague info

    https://www.firstpost.com/explainers/explained-how-elon-musk-got-44-billion-to-buy-twitter-11525831.html

    "

    Ultimately, Musk abandoned the loan idea and put up more funding in cash. The 51-year-old ended up selling around $15.5 billion worth of Tesla shares in two waves, in April and in August.

    In the end, the South African-born billionaire will personally cough up a little more than $27 billion in cash in the transaction.

    And importantly, Musk, who Forbes magazine says is worth around $220 billion, already owns 9.6 per cent of Twitter in market shares.

    Investment funds

    The total sum of the deal also includes $5.2 billion from investment groups and other large funds, including from Larry Ellison, the co-founder of software company Oracle, who wrote a $1 billion check as part of the arrangement.

    Qatar Holding, which is controlled by Qatar’s sovereign wealth fund, the Qatar Investment Authority, has also tossed capital into the pot.

    And Prince Alwaleed bin Talal of Saudi Arabia transferred to Musk the nearly 35 million shares he already owned.

    In exchange for their investments, the contributors will become Twitter shareholders.

    Loans

    The rest of the money — about $13 billion worth — is backed by bank loans, including from Morgan Stanley, Bank of America, Japanese banks Mitsubishi UFJ Financial Group and Mizuho, Barclays and the French banks Societe Generale and BNP Paribas.

    According to documents filed with the US Securities and Exchange Commission, Morgan Stanley’s contribution alone is about $3.5 billion.

    These loans are guaranteed by Twitter, and it is the company, not Musk himself, which will assume the financial responsibility to pay them back.

    The California company has so far struggled to generate profit and has worked at an operating loss over the first half of 2022, meaning the debt generated in the takeover could add even more financial pressure to the social media platform’s already shaky position.

    "

    so the good news is that it still could take a good chunk out of some of the worst wealthy folks around, but perhaps he has insulated Tesla from the fallout a decent bit

    on the other hand, stonks are just rich people feelings, so Twitter imploding will have some affect on his hype bubble