RIP Twitter

#3,607
#3,607
This is fascinating to watch. When you do very large acquisitive loans, it's not unusual to have adjustable interest rates based on various negotiated formulas. It may be something as simple as increase in Fed rates (lender is tying up substantial capital and does not want to look up in 5 years and find out the rate is 3-4 points below market) or economic performance of the acquisition target (get your money back quicker if things start going south). There can be multiple formulas that are triggered by different events.

From what I've read, the loans Musk took out to do the Twitter acquisition are tied to multiple formulas and under current numbers the interest payments on his debt will almost double next year from $699 million to over $1 billion. Wow.

I guess the good news for Musk is that Tesla is now the highest selling car manufacturer in California. That's right, More Teslas are sold in the world's 5th largest economy (by GDP) than any other car maker. (Every time someone says California is a drag on the economy, think again, it's GDP is larger than all the countries in the world except for the US, China, Japan and Germany.)

As a disclaimer, I don't do Twitter and have never had an account. You guys are more than enough entertainment.
 
#3,608
#3,608
WBO said:
From what I've read, the loans Musk took out to do the Twitter acquisition are tied to multiple formulas and under current numbers the interest payments on his debt will almost double next year from $699 million to over $1 billion. Wow.
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I didn't bother to look into it, but I saw tweets yesterday saying that the Twitter acquisition debt is now being valued at 60 cents on the dollar.
 
#3,609
#3,609
Velo Vol said:
I didn't bother to look into it, but I saw tweets yesterday saying that the Twitter acquisition debt is now being valued at 60 cents on the dollar.
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Seriously? I didn't see that. I did see that Tesla stock value is now half of what it was when the acquisition documents were filed with the SEC.

Hey, the guy has been successful in so many ways, I would never count him out. But he was fortunate that he got into two business ventures on their ground floor and has made them hugely successful despite not meeting the standard metrics by which most companies are evaluated.

Now he's taking over a company with its own culture and business plan. He now wants to change it at its core. Maybe he's going to be the poster boy for writing checks he can't cover, but I'm going to hold judgment until he's had a couple of years. The concepts of a regulated economy developed in the 1930's don't seem to mean much anymore. Had someone approach us last week to help create a SPARC. That's when I knew I really am old.
 
#3,611
#3,611
WBO said:
This is fascinating to watch. When you do very large acquisitive loans, it's not unusual to have adjustable interest rates based on various negotiated formulas. It may be something as simple as increase in Fed rates (lender is tying up substantial capital and does not want to look up in 5 years and find out the rate is 3-4 points below market) or economic performance of the acquisition target (get your money back quicker if things start going south). There can be multiple formulas that are triggered by different events.

From what I've read, the loans Musk took out to do the Twitter acquisition are tied to multiple formulas and under current numbers the interest payments on his debt will almost double next year from $699 million to over $1 billion. Wow.

I guess the good news for Musk is that Tesla is now the highest selling car manufacturer in California. That's right, More Teslas are sold in the world's 5th largest economy (by GDP) than any other car maker. (Every time someone says California is a drag on the economy, think again, it's GDP is larger than all the countries in the world except for the US, China, Japan and Germany.)

As a disclaimer, I don't do Twitter and have never had an account. You guys are more than enough entertainment.
Click to expand...

And if CA was a sovereign nation they would rank below Mexico. Comparison between CA GDP and other nations is asinine.
 
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#3,615
#3,615
WBO said:
Seriously? I didn't see that. I did see that Tesla stock value is now half of what it was when the acquisition documents were filed with the SEC.

Hey, the guy has been successful in so many ways, I would never count him out. But he was fortunate that he got into two business ventures on their ground floor and has made them hugely successful despite not meeting the standard metrics by which most companies are evaluated.

Now he's taking over a company with its own culture and business plan. He now wants to change it at its core. Maybe he's going to be the poster boy for writing checks he can't cover, but I'm going to hold judgment until he's had a couple of years. The concepts of a regulated economy developed in the 1930's don't seem to mean much anymore. Had someone approach us last week to help create a SPARC. That's when I knew I really am old.
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Twitter announces new 'official' label as Musk says platform hit all-time high of active users
 
#3,624
#3,624
I think Musk has proved by now that he knows how to make roses out of ragweed.

His biggest impediment right now is the lazy ass entitled pajama workers that are butt hurt because he upset the apple cart. It's not like they can go across town to Meta and get a job. I bet the entire ecosystem of San Francisco has been upset with the layoffs from Twitter and Meta. Personally, I'm loving it because these woke ass entitled little babies will have to fend for themselves.
 
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#3,625
#3,625
VolStrom said:
I think Musk has proved by now that he knows how to make roses out of ragweed.

His biggest impediment right now is the lazy ass entitled pajama workers that are butt hurt because he upset the apple cart. It's not like they can go across town to Meta and get a job. I bet the entire ecosystem of San Francisco has been upset with the layoffs from Twitter and Meta. Personally, I'm loving it because these woke ass entitled little babies will have to fend for themselves.
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Come on haven't you heard Elon Musk is the worst! He'll run Twitter into the ground just like he did PayPal, SpaceX, Tesla and Starlink! 😂🤣
 
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