Elon Musk's Twitter Takeover Becomes a Financial Burden for Banks
- Nearly two years after Elon Musk's acquisition, X's business is still struggling to recover from the financial strain it fell into under his ownership. - The $13 billion loan Musk used to buy Twitter has become the worst merger-finance deal for banks since the 2008-09 financial crisis, with banks unable to offload the debt without major losses. - The loans have remained 'hung' on banks' balance sheets, leading to significant write-downs and impacting bank profits and compensation for merger departments. - Despite hefty interest payments from the X loans, the banks face regulatory scrutiny and have scaled back on providing capital for other merger-finance deals. - The banks are caught in a dilemma: they want to maintain good relations with Musk for future business opportunities but are struggling with the financial fallout from the Twitter deal. Source: [WSJ](https://www.wsj.com/tech/elon-musks-twitter-takeover-is-now-the-worst-buyout-for-banks-since-the-financial-crisis-3f4272cb?st=4b6hee8h35xa9dv&reflink=desktopwebshare_permalink)
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Elon Musk says Twitter’s ad revenue has dropped by 50 percent
According to an estimate research firm Sensor Tower shared with Bloomberg, advertising spending fell by 89 percent to $7.6 million during a two-month period earlier this year. Per Reuters, Twitter has annual interest payments of about $1.5 billion due to the debt the company took on when Musk took it private for $44 billion. This is the latest sign the aggressive cost-cutting measures Musk has undertaken in the last year have not been enough to put the company on solid financial footing.
In the early hours of Saturday morning, Musk tweeted Twitter was suffering from an ongoing negative cash flow issue due to an approximately ...
https://www.engadget.com/elon-musk-says-twitters-ad-revenue-has-dropped-by-50-percent-202600398.html