(Replying to PARENT post)
> spent $13 billion of borrowed money on the acquisition.
Assuming Twitter is breaks even otherwise (give or take a few hundred million) for it to hit 4 billion wouldn't that be like 30% interest? Not impossible, but that seems really high to me.
This has his unsecured loans at something like 11%[0] that seems more reasonable and would have the loans costing around one and half billion.
[0]https://www.reuters.com/business/musks-bankers-mull-new-tesl...
👤willcipriano🕑3y🔼0🗨️0
(Replying to PARENT post)
I highly recommend reading the following article:
https://www.npr.org/2022/11/30/1139964806/how-elon-bought-tw...
Elon Musk bought Twitter with "loans". The interest of those loans are now a responsibility for Twitter. Meaning did NOT have a huge run rate. The leveraged buyout caused this.
There have been an insane amount of focus that the huge predicted losses are a result of lazy overpaid developers. This while ignoring that Elon Mush did a leveraged buyout. The number of employees wasn't the issue, making Twitter responsible for billions in loans while the interest rate of those loans went up is the problem.
Elon Musk keeps complaining about the federal reserve and the interest rate. He's complaining for a reason. He gambled and couldn't back out.