nuff said
this post was submitted on 15 Jul 2023
2488 points (97.9% liked)
Technology
59583 readers
3137 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
By my memory of the news at the time he had to take out a significant amount of debt to complete the purchase of Twitter, meaning that failing to make those mind boggling number of millions of dollars per month in debt payments would put him at risk of his assets being seized, such as his significant stake in Tesla.
The overwhelming majority of his wealth is tied up in Tesla stocks, so Tesla doing well while the vanity project he over-borrowed to complete crashes and burns just means either a painfully slow bleeding dry of Elon, or best case for Elon, Tesla manages to increase in value so much that it completely eclipses the loans for Twitter and he can cut his losses. I suppose there's also the possibility that some insane windfall comes to Twitter and it can gain enough value to not be entirely overburdened by Elon's debt
Elon likely had enough paper wealth to buy Twitter out right. He chose to court outside funding. I am guessing because he won't be on the hook if Twitter goes bankrupt. Still after he sold his Tesla stock his net worth dropped by like 140 billion or something? Such a stupid thing to do, though I am not a money genius and my net worth is negative due to credit card debt
Hmm... Knocks on wood
Those debts most likely belong to Twitter, not Elon personally. That's the "high debt load" he's talking about.