Drudge Retort: The Other Side of the News
Tuesday, January 17, 2023

The bill for Elon Musk's purchase of Twitter is coming due, with the billionaire facing unpalatable options on the company's enormous debt pile, ranging from bankruptcy proceedings to another costly sale of Tesla shares. Three people close to the entrepreneur's buyout of Twitter said the first instalment of interest payments related to $13 billion of debt he used to fund the takeover could be due as soon as the end of January.



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Technology equity analyst Dan Ives at Wedbush Securities said that Twitter was worth closer to $15 billion today than the $44 billion Musk paid for it. "That's why no one is lining up to take on this debt, so the banks are holding it and ultimately they are betting on Musk to do what he did with SpaceX and Tesla," said Ives ...


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Who does this African illegal immigrant think he is, Fat Donnie Loser?

#1 | Posted by LegallyYourDead at 2023-01-17 05:58 PM | Reply

There are a number of options available to Elmo, and all are bad:
-pay the interest, by coming out of pocket because TWTR cannot carry the debt, and Musk's fellow investors will not answer capital calls. One, perhaps two interest payments will be all that will be made in this option
-The investment banks sell their bonds to Amazon/Google/Microsoft/Apple, any of which wait for Musk to default, after which time they blow out the positions of all equity holders and take control of TWTR
-Elmo defaults on the interest payments, then buys the bonds and wipes out the positions of his fellow equity investors, none of whom are Elmo's friends but also none of them ever thought Musk could set on fire their cash investments
-Elmo defaults on the interest payments, then tries to re-negotiate the terms of the indenture, doing so in a high-handed manner, which will honk off the banks, which will then bite the bullets each have been issued, and blow out the equity holders. They will stabilize TWTR, then roll out the New Twitter' in an IPO, at a time when tech IPOs are nearly dead on the street
-Elmo goes Ch. 11, which will result in nearly all of the equity positions being wiped out. Elon will try to retain control of TWTR because he is Elon, master business man and chief head Twit. His requests will be laughed out of bankruptcy court. After a long time, the bond positions will be sold for a nasty loss to one or more of the four names stated above.

Note that none of these options involve Elon hanging onto any but a very small piece of his actual cash investment. 2023 will deliver Elon's comeuppance. Clip and save ...

#2 | Posted by catdog at 2023-01-17 10:03 PM | Reply

I always thought it would be Trump, lurking in the shadows, waiting for Musk to trip up so he, Trump, could move in, take control of Twitter and use it as his springboard to the White House in 2024.

#3 | Posted by Twinpac at 2023-01-18 12:33 AM | Reply

...take control of Twitter and use it as his springboard to the White House in 2024.

You don't really think his mind is that complex, do you?

#4 | Posted by REDIAL at 2023-01-18 01:00 AM | Reply | Funny: 1

Just another African in America who can't pay his bills.

#5 | Posted by Tor at 2023-01-18 01:20 AM | Reply


"You don't really think his mind is that complex, do you?"

Trump's mind is complex enough to recognize that an echo chamber like Truth Social isn't going to get him re-elected.

And I think he's shrewd enough to spot a weakness that would allow him to snarf up Twitter, at its lowest ebb and teetering on bankruptcy, for dimes on the dollar if he can swing the financing . . . and if Musk's bankers are anxious enough to rid themselves of bad debt.

Trump is one of those "kick'em when they're down" types. That's his only talent. Of course, he's taking a look. He wouldn't be Trump if he didn't.

He only needs an investor who has $20 Billion of a Saudi Prince's money laying around.

#6 | Posted by Twinpac at 2023-01-18 02:02 AM | Reply

Twitter is in the -------, so Trump buying it would be the final flush the site needs.

#7 | Posted by Gal_Tuesday at 2023-01-18 02:09 AM | Reply | Newsworthy 1

He only needs an investor who has $20 Billion of a Saudi Prince's money laying around.

You just keep The Laptop out of this.

#8 | Posted by REDIAL at 2023-01-18 02:35 AM | Reply


He only needs it until after the November 2024 election. That not even a full two years. That would be one way Trump could snarf up for himself all the GOP advertising and campaign funds for every other Republican flunky on a ticket somewhere in the U.S. Not to mention blocking the advertising or tweets of support for anybody who is running against him for President, plus the opportunity to spread his own lies, propaganda and conspiracy theories 24/7.

Why wouldn't Trump go after a plum like that?

#9 | Posted by Twinpac at 2023-01-18 02:43 AM | Reply


"You just keep The Laptop out of this."

I was suggesting the dynamic duo of Trump and Kushner, back together again.

And maybe a marriage saved in the process.

#10 | Posted by Twinpac at 2023-01-18 02:54 AM | Reply

Non-paywall version of the article...

From that article...

... If Twitter did not make its first interest payment, it would join a small but notorious club of companies dubbed "NCAA" by debt traders"short for "no coupon at all""that includes US car rental company Hertz and German payments group Wirecard.

Such a default on its debt would probably result in Twitter's management filing for bankruptcy, at which point the US courts would begin an expensive and bureaucratic debt restructuring process.

Musk could avoid this fate by settling the interest from Twitter's dwindling cash reserves or selling more equity in the company to fund the payments"both painful options. The business has a cash position of about $1 billion, Musk has said. He has also warned that its net cash outflow could be about $6 billion next year without additional cost-saving measures.

Rising interest rates mean the debt will become more and more expensive, at the same time as Twitter's enterprise value has been damaged.

Bankers and experts observing the deal said Musk was unlikely to file for bankruptcy, which would risk him losing control of the business.

Instead, his options include cutting a new deal with lenders, such as a debt-for-equity exchange at a discount to the debt's face value, or finding alternative ways to fund its interest payments as he plays for time to turn around the business. "It is more likely [Musk] would ask Twitter's creditors for a forbearance and try and work something out," said one restructuring banker....

#11 | Posted by LampLighter at 2023-01-18 11:29 AM | Reply

This is gonna be tough on Elon. Poor guy can't even afford rent or toilet paper.

#12 | Posted by Derek_Wildstar at 2023-01-18 12:34 PM | Reply | Funny: 1

Yeah, but he can carry a sink around like a lucky horseshoe.

#13 | Posted by LegallyYourDead at 2023-01-18 03:17 PM | Reply

Hah! Sucka!

#14 | Posted by earthmuse at 2023-01-18 08:32 PM | Reply

"Watch me sink this company!"

#15 | Posted by snoofy at 2023-01-18 08:41 PM | Reply

This piece of ---- looked at all the issues in the world and the highest priority he could find to spend his vast money to address was - helping fascists spread their message.

Mr. "climate change is the biggest threat to humanity" could have bought all the climate change denier media sources for that money and made them tell the truth, but instead he jumped full force into helping climate change deniers destroy the earth.

#16 | Posted by SpeakSoftly at 2023-01-18 08:58 PM | Reply

@#12 ... This is gonna be tough on Elon. ..

Mr Musk also has another concurrent issue...

"Talented but crazy": Potential jurors give court their opinions on Elon Musk

...Jury selection in a class-action lawsuit against Tesla CEO Elon Musk began today in a federal courthouse in San Francisco. Not surprisingly, potential jurors already knew who Musk is, and some expressed strong, negative opinions about him.

One woman called Musk "talented but crazy" in a questionnaire distributed to potential jurors. Other potential jurors described Musk as arrogant, narcissistic, unpredictable, and irrational. One said Musk has a mercenary personality.

That doesn't mean Musk won't get a fair trial. The jury selection process, while imperfect, is designed to exclude jurors who cannot make impartial judgments based on the evidence....

Lead plaintiff Glen Littleton is seeking billions of dollars in damages for a class of investors who bought Tesla shares at inflated prices and sold at a loss after Musk's false claim in 2018 that he had secured funding to take Tesla private at $420 per share. Chen, a judge at US District Court for the Northern District of California, already ruled that Musk recklessly made false statements on Twitter....

#17 | Posted by LampLighter at 2023-01-18 09:09 PM | Reply

... and ...

Here's what's at stake in Elon Musk's Tesla tweet trial

...In 2018, before Elon Musk was making headlines for his role in running Twitter, he was making headlines for another Twitter-related controversy: allegedly using the platform to commit fraud.

Back then, a series of tweets about a possible $72-billion Tesla buyout that never materialized got Musk, the electric vehicle maker's CEO, in trouble with the U.S. Securities and Exchange Commission. The SEC said the billionaire knew a deal wasn't on the horizon.

Now, a civil trial stemming from those tweets is being watched as a window into Musk's behavior, past and present, which means the trial could produce new controversies of its own.

The trial starts Tuesday in San Francisco with jury selection. Here's what else you need to know.

First, a quick refresher on what happened with the buyout tweets...

A good article to read if you need to get up to speed on the trial...

#18 | Posted by LampLighter at 2023-01-18 09:12 PM | Reply

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