Musk's decision to acquire Twitter in a $44 billion deal involved $13 billion in loans from seven major banks, which have since found themselves in a precarious position due to Twitter's dismal performance and rising interest rates. The banks are struggling to sell this "hung" debt, marking their worst experience since the 2008 financial crisis. With the value of Twitter plummeting by 71.5%, the future of these loans remains uncertain, raising significant concerns about their recoverability.
"We tried being nice for 2 years and got nothing but empty words. Now, it is war," Musk stated, highlighting his aggressive stance against advertisers and the trade group he claims conspired to boycott Twitter (now X). Despite recent legal actions, the recovery of advertising revenue seems tenuous, with many brands reportedly hesitant to return, leaving the platform's profitability in jeopardy.
Collection
[
|
...
]