Elon Musk's Twitter Takeover Becomes a Financial Burden for Banks

CosmicTaco · 2024-08-21T11:31:38.613783+05:30

- Nearly two years after Elon Musk's acquisition, X's business is still struggling to recover from the financial strain it fell into under his ownership. - The $13 billion loan Musk used to buy Twitter has become the worst merger-finance deal for banks since the 2008-09 financial crisis, with banks unable to offload the debt without major losses. - The loans have remained 'hung' on banks' balance sheets, leading to significant write-downs and impacting bank profits and compensation for merger departments. - Despite hefty interest payments from the X loans, the banks face regulatory scrutiny and have scaled back on providing capital for other merger-finance deals. - The banks are caught in a dilemma: they want to maintain good relations with Musk for future business opportunities but are struggling with the financial fallout from the Twitter deal. Source: [WSJ](https://www.wsj.com/tech/elon-musks-twitter-takeover-is-now-the-worst-buyout-for-banks-since-the-financial-crisis-3f4272cb?st=4b6hee8h35xa9dv&reflink=desktopwebshare_permalink)

Nearly two years after Elon Musk's acquisition, X's business is still struggling to recover from the financial strain it fell into under his ownership.
The $13 billion loan Musk used to buy Twitter has become the worst merger-finance deal for banks since the 2008-09 financial crisis, with banks unable to offload the debt without major losses.
The loans have remained 'hung' on banks' balance sheets, leading to significant write-downs and impacting bank profits and compensation for merger departments.
Despite hefty interest payments from the X loans, the banks face regulatory scrutiny and have scaled back on providing capital for other merger-finance deals.
The banks are caught in a dilemma: they want to maintain good relations with Musk for future business opportunities but are struggling with the financial fallout from the Twitter deal.

Source: WSJ

18mo ago

SparklyNugget

Capgemini

18mo

@Elon_Musk any comments?

GroovyBoba

X (formerly Twitter)

18mo

The cost of free speech and memes is high and someone has to defend peoples right to troll online. And it's just 13B, that's not much for a US bank let alone a few of them combined.

And once I get Trump elected we will do what Modiji and Adani do😉

PrancingPotato

Stealth

18mo

The deal was bad from the word go. Must attempted to back but Parag and Twitter board forced Elon’s hand to do this deal as it was beneficial for their shareholders.