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