minus-squareportifornia@lemmy.worldtoNews@lemmy.world•Elon Musk’s Twitter Takeover Is Now the Worst Buyout for Banks Since the Financial CrisislinkfedilinkEnglisharrow-up1·29 days ago‘he only used some of his cash to buy Twitter for $44 billion. For the rest of it, he used a tactic called a leveraged buyout and spent $13 billion of borrowed money on the acquisition. And now Twitter—not Elon—is on the hook for that loan.’ linkfedilink
minus-squareportifornia@lemmy.worldtoNews@lemmy.world•Elon Musk’s Twitter Takeover Is Now the Worst Buyout for Banks Since the Financial CrisislinkfedilinkEnglisharrow-up2·29 days ago‘he only used some of his cash to buy Twitter for $44 billion. For the rest of it, he used a tactic called a leveraged buyout and spent $13 billion of borrowed money on the acquisition. And now Twitter—not Elon—is on the hook for that loan.’ linkfedilink
minus-squareportifornia@lemmy.worldtoNews@lemmy.world•Elon Musk’s Twitter Takeover Is Now the Worst Buyout for Banks Since the Financial CrisislinkfedilinkEnglisharrow-up3arrow-down3·edit-229 days agoI’m guessing here, I don’t think Musk, the person, took out the loans, I think xitter did. So if xitter defaults, Musk’s assets aren’t on the line. Edit for clarity: ‘leveraged buyout with debt reassignment post acquisition’ linkfedilink
‘he only used some of his cash to buy Twitter for $44 billion. For the rest of it, he used a tactic called a leveraged buyout and spent $13 billion of borrowed money on the acquisition. And now Twitter—not Elon—is on the hook for that loan.’