Re:Musk’s Twitter Purchase Was a Leveraged Buyout
by matthewdgreen on Friday November 04, 2022 @01:41PM
(#33470773)
Who is going to own Twitter when this whole mess falls apart?
Re:Musk’s Twitter Purchase Was a Leveraged Buyout
by sokoloff on Friday November 04, 2022 @01:45PM
(#33470852)
Probably the bondholders (the people who lent the $13B).
Re:Musk’s Twitter Purchase Was a Leveraged Buyout
by matthewdgreen on Friday November 04, 2022 @01:53PM
(#33471007)
Do we know who specifically that is? Because they're going to own a pretty (societally) important property.
Re:Musk’s Twitter Purchase Was a Leveraged Buyout
by dragontamer on Friday November 04, 2022 @02:00PM
(#33471146)
Morgan Stanley, Bank Of America, Barclays, Mitsubishi, and a bunch of other banks are the current holders of these bonds.
But the banks can sell those bands over the next few weeks, so the "final owners" are still yet to be seen.
Twitter borrowed $13 Billion, not Elon Musk. Technically, "X Holdings" took on the debt (a new company Elon started up), but "X Holdings" is effectively Twitter now.
> I can’t just buy a house with a mortgage and walk away.
If you create a business, lets say "Foobar Incorporated", and get the banks to recognize the debt as assigned to "Foobar Incorporated", you can walk away as "Foobar Incorporated" goes bankrupt.
Similarly, it is "X Holdings" who goes bankrupt in this arrangement, not Elon Musk.