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During his Twitter buyout in October, Elon Musk used about $12.5 billion of debt apart from his personal funds
Twitter finally made its first interest payments for the Elon Musk buyout last year. Back in October 2022, CEO Elon Musk bought and privatized Twitter for around $44 billion. While $31 billion of this buyout payment was made from private funds, $12.5 billion were borrowed on acquisition in a system named as leveraged buyouts.
Soon after the acquisition, Twitter had a buyout debt of around $12.5, which the company has to pay off with interest. The interest payment made today was one of the many to come for the world’s biggest microblogging platform.
This interest payment was made to a group of 7 banks which included American banking giants including Morgan Stanley and Bank of America Corp.
Apart from borrowing money, Elon Musk also offloaded a large amount of Tesla shares for his Twitter buyout. While it helped Musk buy Twitter, it did set off a lot of Tesla investors who still criticize the Twitter purchase.
Since the moment Musk stepped into the Twitter office, the CEO has made some drastic changes in the organization. Around half of Twitter’s total workforce was laid off and the working hours went up for the remaining employees.
The company also aggressively jumped towards creating new cash flow mechanisms such as the Twitter blue verification badge and uplifting the ban on political advertisements.
Read more:
Tech Careers And Opportunities Are Still Very High Despite The Mass Layoffs
