Posted on 11/29/2022 4:28:48 AM PST by DoodleBob
...Some funds have offered to take a piece of the loan package at a discount as low as 60 cents on the dollar, which would be among the steepest markdowns in a decade. The banks have so far deemed those bids unattractive, according to people with knowledge of the discussions who asked not to be identified because the talks were private.
The lukewarm investor reception shows just how big of an albatross the Twitter debt is becoming for a Morgan Stanley-led cohort that committed to finance Musk’s acquisition of the social-media firm back in April, before credit markets cratered. The seven banks are now saddled with risky loans that they never intended to keep on their books, and face an increasingly uphill battle to minimize losses.
Discussions so far have centered around the $6.5 billion leveraged loan portion of the financing, the people said. Banks had seemed unwilling to sell for any price below 70 cents on the dollar, one of the people said. Even at that level, losses could run into the billions of dollars, Bloomberg calculations show.
The discussions were informal, and there’s no certainty that they will lead to an agreement, the people said.
Barclays Plc, BNP Paribas SA, Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. declined to comment. Bank of America Corp., Morgan Stanley and Societe Generale SA did not respond to requests for comment.
Musk has acknowledged a “massive drop” in revenue while the social media company’s growth prospects look uncertain. That doesn’t bode well for Twitter’s annual interest burden, which is estimated to be $1.2 billion a year. The billionaire also alluded to loosening policies that restrict free speech, a risk that is spooking advertisers.
(Excerpt) Read more at finance.yahoo.com ...
Booting useless leftard employees saved about a billion per year and advertisers will quietly come back.
What a backwards world we live in.
Never EVER had a use for twitter but if Elon keeps doing what he’s doing and the nutzoids on the left keeping doing what they’re doing....I will soon enough. And you moron advertising genasses that are pulling out would be wise to consider that I’m not the only on the RIGHT side that is going to first time it on twitter simply because the WRONG side has such a problem with free speech. “The only way to make a bad idea seem like a good idea is to silence the good idea that shows just how bad the bad idea really is” applies here. A little wisdom from L.Star.
Same here ... 100%
“The billionaire also alluded to loosening policies that restrict free speech, a risk that is spooking advertisers.”
Uh-oh! Can’t have free speech!
Claire, can you write me a headline that no one will immediately understand? Great work!
Of course they will. At the end of the day, their ads brought in revenue. That revenue isnt going to magically come from other places quickly. Twitter is a huge platform. The ads are a symbiotic relationship. Its not one way lol.
And let's not blame Claire...it took a number of people to write this article.
“How to tell someone you don’t understand what fascism is without saying it directly”
My disgust with the left is primarily based on their ignorance, which they spew forth like a possessed Linda Blair in “The Exocist”. Everything they say is tainted with false premises and complete misunderstanding (or intentional) of the very nature of reality.
How do you ever reconcile with that level of insanity?
Pre-buyout, Twitter had tightened policies that restrict free speech, a move that had comforted advertisers.
The billionaire also alluded to loosening policies that restrict free speech, a risk that is spooking advertisers.
—
Of course. Free speech is a risk to corporatism, aka fascism.
The banks refused the 60% offer. The “investors” are just looking for a bargain.
If someone offers $50,000 for your $150,000 house, it doesn’t mean the value dropped by 66%.
There’s no signaling like virtue signaling.
“How do you ever reconcile with that level of insanity?”
It’s an old problem…
“On every side the wicked prowl, as vileness is exalted among the children of man.”—Psalm 12:8
Seems like it has to crescendo before flaming out, then out of the ruins a rebuilding.
Hypocrisy is a hallmark of the Left.
Facts, logic and the lessons of history mean nothing to them. All that matters is getting and keeping control over others. Its all about power.
It will be interesting to see what Musk tries to do with this Twitter thing. He is into creative destruction. So I figure he will add features and capabilities that target Apple customers, YouTube users, Facebook (Meta), and the various payment services.
Would a guy like him spend over $40 billion for a company and just tweak a few things? Not likely IMO.
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