arthwollipot
Observer of Phenomena, Pronouns: he/him
Yeah, I'm with Zaganza on this one. It's bad business practice (and possibly illegal) to mix personal finances with business finances.
BIG difference.
Musk can let Twitter sink under a mountain of debt without going under himself.
Yeah, I'm with Zaganza on this one. It's bad business practice (and possibly illegal) to mix personal finances with business finances.
Yes, Elon Musk is the richest person in the world. But he only used some of his cash to buy Twitter for $44 billion. For the rest of it, he used a tactic called a leveraged buyout and spent $13 billion of borrowed money on the acquisition. And now Twitter—not Elon—is on the hook for that loan.
A distinction without a difference. Musk is the owner of Twitter. Twitter's money is Musk's money.
Of course there’s a difference. Musk owns Twitter but their finances are separate. Twitter is a limited company. If Twitter goes bankrupt, Musk is not also bankrupt.
Like me taking out a buy-to-let mortgage and persuading the bank that the house should owe the debt not me.
BIG difference.
Musk can let Twitter sink under a mountain of debt without going under himself.
No he can't, most of the debt notes are held by Mohammed bin Salman ibn Saud.
Plus, because Twitter was such a bad purchase, Musk had to secure debt on Tesla stock.
No he can't, most of the debt notes are held by Mohammed bin Salman ibn Saud.
Plus, because Twitter was such a bad purchase, Musk had to secure debt on Tesla stock.
Are you implying that Musk will be assassinated by the Sauds if he defaults? Else, his debt is the same as any other.
Nothing even remotely unusual with stock being used as loan collateral.
The worst legal consequence for Musk over the Twitter deal is he loses control of Tesla.
I guess the really worst case for Musk is he becomes short one head.
Definitely not unusual to use stock for loan collateral. It's really the only way that Musk can convert his paper billions into real money, because
a) if he sells shares it impacts the price of Tesla stock making him technically poorer
b) the profits from any shares he sells are liable for tax.
In fact, it is estimated that around 90% of Musk's Tesla shares are pledged as loan collateral.
Are you implying that Musk will be assassinated by the Sauds if he defaults? Else, his debt is the same as any other.
Nothing even remotely unusual with stock being used as loan collateral.
The worst legal consequence for Musk over the Twitter deal is he loses control of Tesla.
I guess the really worst case for Musk is he becomes short one head.
I think that would depend on whether the creditors wanted Tesla stock or not.I would think, his creditors would just take over the pledged shares if he defaults, not sell them.
Yes if Musk put in a market sell order for his entire holding of Tesla the price would crash... heck it might cause the NASDAQ to halt trading.
And soon we shall bid adieu to the twitter brand and, gradually, all the birds
If a good enough X logo is posted tonight, we’ll make go live worldwide tomorrow
Elon tweeted
And
I mean Twitter's brand was getting trashed, but it was still worth more than the replacement.
Also trying his "X" brand to the prominent binfire he's creating in Twitter is a very strong negative for the rest of his companies.
So in the case of Musk buying Twitter, which entity borrowed the money and which entity consequently paid for and owns Twitter?A house cannot owe money, but you could create a company, ("Jimbob's Estates") and have the company borrow the money to buy the house. Then the company, not you, would be responsible for the debt. If this arrangement is acceptable to the bank, I don't see why it couldn't work in principle.
So in the case of Musk buying Twitter, which entity borrowed the money and which entity consequently paid for and owns Twitter?
However, Mr Musk also has a history of making statements that fail to happen or are not serious.
Mr Musk, who has changed the name of the business to X Corp, said the replacement "should have been done a long time ago".
According to reports, the billionaire wants to create a "super app" called "X" which is similar to China's WeChat.
Twitter owner Elon Musk has said he wants to get rid of the Twitter bird logo, and replace it with an "X".
https://www.bbc.co.uk/news/business-66284304
I refer you to the highlighted part of this earlier reply.Who would pay billions to buy one of the most recognised brand logos in the world then decide to get rid of it?
You mean X, the universal UI element for quitting out of something on a computer?
That's the kind Musk intelligence, foresight, and leadership we come to expect.
Great move, because X doesn't already have a well-established presence on the internet, or a multi-billion dollar industry behind it.
Oh wait, I just Googled X and had to take it off Safe Search. Holy cow! Someone should show Elon what comes up when you search X!
Seriously, how many government and corporate internet servers might end up blocking Twitter X automatically due to the name?
Who would pay billions to buy one of the most recognised brand logos in the world then decide to get rid of it?
Quite mysterious. Musk could have created a lousy Twitter clone using his x.com branding full of spam bots and weird Elon fanboys for a fraction of the fortune he paid for Twitter. He doesn't seem interested in preserving any of this company he paid way too much for.
Increasingly difficult to see any reason for him to buy Twitter and run it into the ground other than he's a not very smart reactionary with an easily bruised ego and poor impulse control.
Great move, because X doesn't already have a well-established presence on the internet, or a multi-billion dollar industry behind it.
Oh wait, I just Googled X and had to take it off Safe Search. Holy cow! Someone should show Elon what comes up when you search X!
Seriously, how many government and corporate internet servers might end up blocking Twitter X automatically due to the name?
Just a little background ...
Musk helped found x.com which eventually became PayPal and made Musk a lot of money. The x.com domain redirects to Twitter now.
How about a compromise: replace the logo with the Dead Bod meme that graffiti artist from Hull paints all over the place, and use an X for its eye?
(Worth a Google, rest of the world folks. It's really odd.)
Who would pay billions to buy one of the most recognised brand logos in the world then decide to get rid of it?
A sports team would be a lot more fun.He could have saved a lot of money by just buying a sports team instead of Twitter.
In this case he's just going to add to his legal expenses. Maybe he's so rich that he doesn't care.
X is the future state of unlimited interactivity – centered in audio, video, messaging, payments/banking – creating a global marketplace for ideas, goods, services, and opportunities. Powered by AI, X will connect us all in ways we’re just beginning to imagine.