After Elon Musk’s acquisition of Twitter, it is still dealing with debt burdens. Accordingly, X’s financial problems are deepening, according to the latest email sent to employees. Major banks involved in financing the deal have moved to secure some of the debt.
Elon Musk is not happy with the pace of growth for X
Major banks including Bank of America, Barclays and Morgan Stanley are preparing to sell some of the $13 billion in debt they provided to finance the acquisition of Twitter, according to leaked US documents. Banks plan to sell debt at 90-95 cents on the dollar, while holding lower-priority debt.
elon musk x
In an email to employees, Elon Musk admitted that user growth is stagnant, revenues are below expectations and the company is barely meeting targets. Despite previously claiming that the company would be cash flowing in a few months, it faces annual interest payments of over $1 billion due to loans used for the acquisition.
Apple has made a significant change in its AI team. The company is expected to increase its AI investments.
The decision of banks to sell their debts stems from the desire to avoid losses. Accordingly, investors reduced their share values by up to 78 percent. Banks also seem to have lost faith that the platform’s financial performance will improve.
Investors hope to benefit from Elon Musk’s connection with President Donald Trump. However, Elon Musk has yet to realize his dream for X to be “the hub for users’ entire financial lives.” While the platform has added some new features, they are not evidence of the transformation Musk promised.
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