Nearly two years after Elon Musk’s acquisition, X’s business is still struggling to climb out of the deep hole it fell into under his ownership.
The $13 billion that Elon Musk borrowed to buy Twitter has turned into the worst merger-finance deal for banks since the 2008-09 financial crisis.
The seven banks involved in the deal, including Morgan Stanley and Bank of America, lent the money to the billionaire’s holding company to take the social-media platform, now named X, private in October 2022. Banks that provide loans for takeovers generally sell the debt quickly to other investors to get it off their balance sheets, making money on fees.
“since the financial crisis” - You’ll have to be more specific than that 🥲
2008, obv
Circa 1177 BCE. Sea Peoples ruin everything.
Now now… I agree that the Peleset are all awful, but what have the Weshesh ever done to you?
Burning olive oil can’t melt copper bars! The attack on the twin ziggurats was an inside job masterminded by the King of Uruk, Gilga W Mesh!
We hic! Needsh to g’hic! Wesh…eshh
The losses on banks’ balance sheets from the deal are also biting into potential bonuses for some bankers, the report said.
They should just be fired. This wasn’t a deal that looked like it had good potential but didn’t pan out. It was obviously a bad buy right from the start and the guy who was going to run the private enterprise was both spread too thin to run it well, was increasingly erratic in his behavior, and wasn’t any good at the business he was taking over. Everyone knew it was a bad deal at the time.
Yes, but have you considered: Tesla line go up. Elon CEO. When Elon CEO, Twitter line go up. Logic.
No single human should have this much control over our economy.
This makes me happy.
Guess the saying is true, if you owe the bank $1000, that’s your problem. If you owe the bank $13 billion, its the bank’s problem.
Hmm… How do I get them to lend me $13B??
The key is to have $60 billion.
The key is to become famous and create hype around your gambling bet so other people artificially inflate the value so that you have a “theoretical” $60 billion.
- Be rich
- Don’t be poor
Align with the value of international finance, e.g. think that the poor exist to be exploited for greater inequality.
They already covered that with 1. And 2.
- Be rich and get richer
- Don’t be poor and punish the poor for being poor
Shit, best I can do is
be poor and punish other poors for being poorAh the local redneck business owner. I lucked into a niche where I can sit back and let some country boys work and print money for me. I’ll look down on everyone else in town from my swanky nouveau riche cowboy boots.
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Wikipedia about this sourceI thought the mod thread about this bot resoundingly agreed that it should go away?
Morgan Stanley and BOA will find ever bigger suckers to sell those loans to once they’ve had a chance to repackage them.
It is long past time we got over our child-like worship of billionaires.
We’ll never get over our worship of them, because it is engineered.
The media machines they own, including every market news site, fills every stream with deceptive articles of the 8 things billionaires do that made them rich and the 7 the plebs do that stop them from being billionaires, constantly defying them while shaming you for not being like or serving them better.
The natural state for any society where the elites live large while the masses struggle to survive is to DESPISE the elites, whether violent recourse would be suicide or not.
The love/deification for our elites by many of those they oppress is part of their engineered propaganda to keep it that way with their bully pulpit artificially, and that pulpit is more than loud enough to drown out and ruin the credibility of any prominent voices of reason. Easier for them to maintain the market capitalist machine like this than through overt slavery, they just convince the masses it’s in their interests to self-enslave.
okay but he blames advertisers for ruining the company
Narcissists will never blame themselves for their screw ups.
At the time, Musk himself had complained that the price for Twitter was too high, but he decided to go ahead with the deal after waffling over it for a while.
Mmmmmmmmm that’s not how I’d describe it, Marketwatch.
I mean, he did have to decide if he wanted to pay the money and take the company, or just pay the money, as he’d signed a solid agreement. So there was a choice.
In retrospect, paying the money and not taking the company might actually have been the more sound financial decision.
Guess they didn’t want to say that Musk shit posted so hard that he ended up being forced to buy the company.
Morgan Stanley has another problem right now too as Their
CEOChairman is missing in that yacht sinkingCEO or chairman?
Ah yea you’re right. Chairman but what’s the difference
Thats crazy I used IDOL for a decade. Good riddance.
Orcas are based.
Sounds like he found out what’s behind the implications.
I think we’re the tasty treats!
Out in the middle of nowhere on international waters. What’s he gonna do, say no? Of course not. Because of the implication.
We were due for our yearly billionaire offering to Poseidon.
I am deep in prayers so that Poseidon, Oceanus and every other sea related deity take our offerings of other billionaires and their yachts
I don’t think one is enough to placate Poseidon.
May the god of water take mercy on us with this wealthy sacrifice and place a harvest in our nets
And hold back sea level rise!
I would think that would be the god of Antarctica’s bailiwick.
Either that or Jörmungandr has aquired a taste for richness. As a man who likes cheesecake I can respect it.
My most requested recipe is: New York Style Cheesecake Stuffed, Chocolate covered, graham cracker rolled, strawberries.
That sounds great minus the strawberries, add more chocolate instead.
The strawberries make it a “healthy dessert.”
Bite me I want more chocolate, also if it can give me cavities it prolly aint healthy.
You probably don’t taste as good as the cheesecake and strawberries. I’ll bite them, thanks. Cheers m8 :)
This one is extra sweet to me as Morgan Stanley stole $4k of my funds, claiming it was abandoned when they never once sent me a message, notification on their site, letter, or call. It took me several months to get it back. All the while I was unemployed and really needed that money.
Sounds like sacrificed a few billionaires this time.
I hope our watery god is satisfied, if not. I guess we have sacrifice a few more billionaires.
I think we should advertise small boat sailing to Elon, combined with the beauty of the Gibraltar strait area and the manliness of doing it alone.
We can give Poseidon a break and let the orcas have one.
Twist: The Orcas are working for Poseidon.
Yes, but delegation.
That’s why Poseidon is a god and I’m just a schlub.
Lmao nice.
I like this new tradition
Sounds like a they problem.
They are too big to fail?
A problem partially funded by my mortgage 🙃
Yep, if you own a bank 10 thousand dollars, thats a you problem. If you owe a band 10 billion dollars, thats a them problem.
Bank of America and Morgan Stanley commanded the top two spots in the U.S. leveraged-finance investment banking league tables in 2021 and 2022 during some quarters before Musk bought Twitter, according to data from Dealogic. In 2023 and 2024, JPMorgan and Goldman Sachs—which didn’t finance the Twitter deal—have held the top spots.
He’s so toxic that being involved with him can unseat you from being the top two in your industry. This will make people a bit more hesitant to get into bed with him (gross) in the future.
Barclays’s top investment bankers on the mergers and acquisitions team were told at a New York dinner early last year that compensation for everyone in the room would be cut by at least 40% from the prior year. The bank had several hung deals hurting its performance but X was by far the largest, according to people familiar with the situation.
When you’re slashing compensation for your people, especially the ones who bring in real money, you know it’s serious. I’m happy to see X crash and burn and pull down bankers with it. Dumbass mf.
Marketwatch link that isn’t paywalled:
Good fuck em. As if they totally havent made back any loss in recent years
You sweet summer child… You think this will affect anyone at the top? All the rich people will walk away unaffected as more layoffs roll down or they borrow from the gov/tax payers.
