Everyone make love Elon Musk was overpaying for Twitter whenhe purchase the social media platform back in 2022 . That ’s precisely why the billionaire tried toback out of the dealbefore being forced to finalize the purchase after a court of law order . But we ’re now learning more item about just how dumb purchasing Twitter was in financial term , according to a account from theWall Street JournalTuesday . ostensibly , it was the worst deal since the global financial crisis in 2008 .
Seven banks loaned Elon Musk money number $ 13 billion in 2022 to help oneself him buy Twitter , now screw by the obnoxiously generic name X , and every individual one has been unable to offload the debt without receive “ major losses ” from the deal , according to the Wall Street Journal . This means the loans are just sitting on the symmetricalness sheets of these banks . In fact , the Journal explains that this was n’t just one of the bad deals since 2008 , it ’s one of the unfit deals of all fourth dimension .
Musk and other investor brought approximately $ 30 billion in cash to the table , while the banks append the other $ 13 billion to finalize the purchase . But we now know the people who work on at those banks have felt considerable financial pain from agreeing to something so stupid . How much pain ? As the Journal tells it , top investment banker at Barclays were evidence at a dinner party in recent 2023 that everyone would be getting at least a 40 % pay cut . After everyone sire their bonuses for the year , about 50 of the company ’s 200 directors left , according to the Journal .
© Photo by Richard Bord/WireImage
Every bank in the pot , including Morgan Stanley , Bank of America , Barclays , Mitsubishi UFJ Financial Group , BNP Paribas , Mizuho , and Société Générale , have been sputter with this wall hanging on their book . And talks about reconstitute the deal have n’t been fruitful , agree to the Journal . As countless journalists at places like Bloomberg have previously pointed out , those same banks want to have approach to anything Musk may be cooking up in the future , including a potential IPO of SpaceX , arguably the smartest matter the billionaire ever launch . SpaceX is a powerhouse in commercial space and benefits staggeringly from regime contracts . Starlink , the satellite cyberspace arm of SpaceX , may even be spun off and could see its own initial offering in the hereafter . And the plug around all of that position these savings bank in a tricky perspective as Musk continues to hurt their financial positioning with his dumb Twitter leverage .
X is currently value at roughly $ 19 billion , less than half what Musk pay for it . And yet Musk has maintained a reputation among some of the slow the great unwashed that he ’s still a genius . The tech oligarch remains surrounded by a bubble of sycophants on go constantly telling him what an amazing person he is . The entire spectacle is likely a demonstration of the elemental reason he buy the site . Musk bought himself a safe place where everyone is constantly say him he ’s a genius . And that ’s deserving a deal of money to one of the wealthiest human being in the human beings .
BanksDealsElon MuskSPACEXTESLAX ( Twitter )
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