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by unculture 1300 days ago
It’s going to be something like that. He bought it for 44 billion. That was mostly loans. Those loans are transferred to the company and the company pays interest on them.
2 comments

>He bought it for 44 billion. That was mostly loans.

That's not true if media reports about the purchase was accurate. The debt financing was only $13 billion: https://www.google.com/search?q=musk+buys+twitter+%22%2413+b...

The more complete funding structure[1] looked like this:

+ $24 billion : Elon Musk personal wealth (e.g. selling some of his TESLA stock to raise money)

+ $7 billion : other equity investors (Saudi Arabia prince, Larry Ellison, etc.)

+ $13 billion: bank loans

The Twitter puchase was mostly Elon's personal money (~54%) and not debt.

[1] https://archive.ph/L6Mhv

https://thepolicytimes.com/top-10-richest-people-worth-more-...

So, a handle of individuals can dwarf most countries GPD.

GDP is a flow per year. Like the flow of water through a pipe. Wealth is a stock. Like the quantity of water in a barrel.

Please pass this on when you see this cheap talking point, thanks.

And a couple of small countries can dwarf that entire group ;)

https://www.nbim.no/

That's only like $1 trillion, so just several of the world's richest people.
But who is issuing these loans? It should be pretty obvious that you would never see that money back right?
The banks committed to the loans at the point of the takeover proposal (end of April). The macroeconomic lookout was better. Since then, just about every tech stock is down >20% and Musk has helpfully made unfounded accusations of bots and spam and whatnot in a pointless attempt to delay the acquisition, meaning the banks now have to try and unload these loans in a recession. I think last I heard they are giving a 40% discount or just keeping them on their books, hoping for a recovery as Musk trashes the company value further with every week that passes.
Per link upthread: Bank of America, Barclays and Mitsubishi UFJ Financial Group, apparently. I've also heard Morgan Stanley mentioned.
Don't forget Qatar Holding and some oilprince from Saudi Arabia which are now also major shareholders
Only if the people issuing the loans are basing their decisions off of media coverage.