Have you heard about Elon Musk's big purchase of Twitter? It's now called X, and there's some interesting news about it. Let's talk about what's happening with the money side of things.
Back in 2022, Elon Musk bought Twitter for a huge amount - $44 billion! That's a lot of money, right? To help pay for this, banks gave him $13 billion in loans. Now, these banks are trying to sell these loans to other investors.
Recently, some big banks, led by Morgan Stanley, sold a big part of these loans - $4.74 billion to be exact. This happened on February 14th. The banks sold these loans at what they call "par," which means they got the full amount back. The people who bought these loans will get 9.5% interest, which is pretty good.
What's interesting is that the banks wanted to sell less at first, but then they sold more. More investors were interested in buying, which shows there's a lot of excitement about this deal. The reason investors were interested in buying X (formerly Twitter) debt was likely due to speculation about potential changes in the political landscape and how that might affect the platform's profitability. The connection between Trump and Musk was probably based on their past interactions and the possibility of Trump's return to the presidency, which has now become a reality.
These banks have been holding onto these loans for almost two years, which is unusual. Normally, they sell loans like these quickly. But now, they've managed to sell almost all of the $13 billion.
There's still a small part left - about $1.3 billion. The banks haven't sold this part yet, and we don't know when they will.
One thing that made investors interested was that by buying these loans, they also get a chance to own a small part of Elon Musk's AI company called xAI. This made the deal more attractive to them.
So, what does all this mean? It shows that even though buying Twitter was very expensive, investors still believe in Elon Musk's ability to make it successful. They're willing to put their money into his projects, even when it involves big risks.
What do you think about Elon Musk's big move with Twitter (now X)? Do you think it was a smart decision? These are the kinds of questions that business people and investors think about all the time!
Hashtags: #ElonMusk #TechFinance #BusinessDeals #DigitalTransformation #TechAcquisitions
Keyword: Elon Musk
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Source: www.reuters.com / February 15, 2025 / https://www.reuters.com/business/finance/banks-sell-down-more-x-debt-just-13bln-now-left-their-books-2025-02-14/
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