Mike Masnick ✅

So, yeah, not only may Twitter be screwed, but Musk himself may be in somewhat more trouble than people have realized…

msn.com/en-us/money/savingandi

As it took six months to complete the purchase of Twitter, it is not easy to pinpoint when the loan was finalized between May, in the early days of the Twitter acquisition negotiations, and October, when the acquisition was completed. During this period, the Tesla shares traded above $200, reaching as high as $317.54 on May 4. What is certain is that, with the share price closing at $179.05 on December 9, the collateral shares have lost approximately between 10% and 40% of their value, possibly requiring Musk to post additional collateral to make up for the value decrease. According to Bloomberg News, his advisers are reportedly pressuring him to use his Tesla shares as collateral for new loans to replace Twitter debt. Musk's bankers are considering replacing some of the high-interest debt he layered on Twitter with new margin loans backed by Tesla stock that he would be personally responsible for re-paying. The discussions have so far focused on how to refinance $3 billion of unsecured debt on which Twitter pays an interest rate of 11.75%. It is in this context that the tech mogul has just made a rare admission and expressed his regrets. Musk suggested that he should never have taken out a margin loan on his Tesla shares because, no matter what the group's long-term potential is, in an uncertain economic environment the stock's value is likely to go down in the short term.
December 13, 2022, 11:49 pm 52 boosts 125 favorites

@mmasnick Wow, just how much of his available assets did he take out a loan on this if he's at risk of being called?

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