The Dumpster Fire AKA Twitter

[Toddsterpatriot]

He must make payments of nearly $800 Million per month from a site that's hemorrhaging advertisers,

You've got some bad liberal math there.

 

[C_Clayton_Jones]

Toro is absolutely correct on all counts. And as Tesla stock goes down, Musk will need to convert more of his to make the payments.

And bullying advertisers isn't going to go well.

Bullying advertisers and lying.

Appropriate, warranted criticism of Twitter and Musk is not trying to ‘destroy’ free speech in America.

 

[MaryL]

At the rate he's going it won't last a year. He must make payments of nearly $800 Million per month from a site that's hemorrhaging advertisers, with some of the largest follower accounts moving to Mastodon and Tribel. Where is that revenue going to come from?

You got a link to that? A guy that made electric cars profitable and wants to put a man on mars, made reusable rockets (something Boeing and other contractor can't do...). That guy.

 

[jehanne1431]

Toro is absolutely correct on all counts. And as Tesla stock goes down, Musk will need to convert more of his to make the payments. . And bullying advertisers isn't going to go well.

You think we are worried elon will not survive this? . Twitter was as much of a subversive force of social influence through censorship as facebook google youtube, msm, et al. What Musk did was blow a hole into the left's monopoly of public voices. . That victory alone is worth the cost.

 

[Synthaholic]

You've got some bad liberal math there.

Sorry, it's $1 billion per year, not month.

Last year, Twitter’s interest expense was about $50 million. With the new debt taken on in the deal, that will now balloon to about $1 billion a year. Yet the company’s operations last year generated about $630 million in cash flow to meet its financial obligations.

That means that Twitter is generating less money per year than what it owes its lenders. The company also does not appear to have a lot of extra cash on hand. While it had about $6 billion in cash before Mr. Musk’s buyout, a large portion of that probably went into the cost of closing the acquisition.

Can Elon Musk Make the Math Work on Owning Twitter? It’s Dicey. (Published 2022)

Mr. Musk faces financial challenges in owning Twitter. The site frequently loses money and took on $13 billion in debt for the blockbuster deal.

www.nytimes.com

 

[theHawk]

Or "Why Twitter was Down $10 in a Strong Up Day."

He bought the company for $44 billion. Here's the financing - Musk $24 billion in equity, Saudi Arabia (the guys who bonesawed a critic to finance the purchase of a platform by a guy who wants to give it more free speech is beyond ironic).

 

[Synthaholic]

Elon Musk has sold $33 billion of Tesla stock in less than a year

Elon Musk has spent much of the last year dumping his Tesla stock

qz.com

LOL!

Thanks for the link. No wonder Tesla is tanking. It was $402 a year ago, now it's like $196.

And he used his own stock as collateral for the twitter purchase. Meaning he's going to have to dump even more of his diminishing-value stock to make the same payment.

52 Week Range

196.68 - 402.67

 

[Toddsterpatriot]

Sorry, it's $1 billion per year, not month.

Last year, Twitter’s interest expense was about $50 million. With the new debt taken on in the deal, that will now balloon to about $1 billion a year. Yet the company’s operations last year generated about $630 million in cash flow to meet its financial obligations.

That means that Twitter is generating less money per year than what it owes its lenders. The company also does not appear to have a lot of extra cash on hand. While it had about $6 billion in cash before Mr. Musk’s buyout, a large portion of that probably went into the cost of closing the acquisition.

Can Elon Musk Make the Math Work on Owning Twitter? It’s Dicey. (Published 2022)

Mr. Musk faces financial challenges in owning Twitter. The site frequently loses money and took on $13 billion in debt for the blockbuster deal.

www.nytimes.com

With the new debt taken on in the deal, that will now balloon to about $1 billion a year

Wow!

$1 billion a year.

Elon could never afford that.

 

[MaryL]

Thanks for the link. No wonder Tesla is tanking. It was $402 a year ago, now it's like $196.

And he used his own stock as collateral for the twitter purchase. Meaning he's going to have to dump even more of his diminishing-value stock to make the same payment.

52 Week Range

196.68 - 402.67

Schadenfreude, or why democrats like tanking our economy is good thing. Pt, 2.

 

[Moonglow]

Or "Why Twitter was Down $10 in a Strong Up Day."

He bought the company for $44 billion. Here's the financing - Musk $24 billion in equity, Saudi Arabia (the guys who bonesawed a critic to finance the purchase of a platform by a guy who wants to give it more free speech is beyond ironic) $5 billion in equity, Larry Ellison $2 billion in equity, and $13 billion in loans from Wall Street banks. The interest payments on the loans are $1 billion a year. However, Twitter has never generated cash flow of more than $770 million.

He's got to find the cash flow someplace. That's why he's lurching around, from the incompetent firings to arguing with Stephen King over whether he'd pay $20 or $8 for a blue checkmark. Complete amateur.

And revenue isn't falling because of "woke activists." It's falling because corporations are worried about the brand value of Twitter. It's more than just trolls increasing the n-bomb 5x over the weekend. Twitter put out an innocuous statement to advertisers that things weren't going to change, then Musk retweets the retarded Paul Pelosi conspiracy theory. Who wants to be associated with a sewer? Musk's behavior has given advertisers little comfort.

Tesla was down $10 today when the Dow was up 400 points. Musk partially financed the purchase by selling $7 billion in Tesla stock. So where's the other $17 billion come from? I don't know this for certain, but I'd be willing to bet that he pledged stock in a remote vehicle and borrowed against the vehicle. Rich people do that all the time. Rather than sell the shares, they pledge their shares as collateral for a loan. It makes sense. Selling stock triggers a capital gain, interest payments can be written off against income.

Why does that matter? If Twitter is going to fail, Elon is going to have sell $17 billion worth of stock to cover his personal loan. But he hasn't pledged $17 billion. He's pledged more. Perhaps 2x that amount. Banks require a cushion above the value of the loan. So if he has pledged $34 billion, that amount is declining every day as Tesla falls. If I were a hedge fund manager, I'd be shooting against Tesla and shorting the stock all day, trying to drive it down to force the banks to sell to get back their money.

Elon should have stuck to making electronic vehicles and rockets to Mars. It's easier than running a platform.

The future of Twitter with Elon Musk at the helm...

 

[MaryL]

Sorry, it's $1 billion per year, not month.

Last year, Twitter’s interest expense was about $50 million. With the new debt taken on in the deal, that will now balloon to about $1 billion a year. Yet the company’s operations last year generated about $630 million in cash flow to meet its financial obligations.

That means that Twitter is generating less money per year than what it owes its lenders. The company also does not appear to have a lot of extra cash on hand. While it had about $6 billion in cash before Mr. Musk’s buyout, a large portion of that probably went into the cost of closing the acquisition.

Can Elon Musk Make the Math Work on Owning Twitter? It’s Dicey. (Published 2022)

Mr. Musk faces financial challenges in owning Twitter. The site frequently loses money and took on $13 billion in debt for the blockbuster deal.

www.nytimes.com

yadda yadda. Elon is a billionaire; he used his money doing things that defied logic. Twitter is mere peanuts. Damn, Elon advocates for republicans to: "Endeavor to persevere" - chief Dan George.

 

[Synthaholic]

With the new debt taken on in the deal, that will now balloon to about $1 billion a year

Wow!

$1 billion a year.

Elon could never afford that.

Ok, dude.

 

[MaryL]

Ok, dude.

Hmm. Ok. Elon, that billionaire outclassed rocket scientists at NASA, Rockwell & Boeing, and created a reusable rocket system and so on and so forth he's going to hedge his fortune on Twitter?

 

[two_iron]

What the fuck are you hammer and underwear faggots babbling about?

You consider TSLA being down $10 a win??

OMG.... but you're not mentally ill, and considering suicide.... right?

BTW, check out META (FuckBook).... down from $384 to $96.... something else to giggle about.

 

[Toddsterpatriot]

Ok, dude.

Real Time Billionaires

Forbes' Real-Time Billionaires rankings tracks the daily ups and downs of the world’s richest people. The wealth-tracking platform provides ongoing updates on the net worth and ranking of each individual confirmed by Forbes to be a billionaire.

www.forbes.com

 

[Synthaholic]

Hmm. Ok. Elon, that billionaire outclassed rocket scientists at NASA, Rockwell & Boeing, and created a reusable rocket system and so on and so forth he's going to hedge his fortune on Twitter?

He didn't create anything. He didn't invent electric cars or start Tesla, either.

Elon Musk owes his wealth and his companies to Barack Obama.

 

[Toro]

With the new debt taken on in the deal, that will now balloon to about $1 billion a year

Wow!

$1 billion a year.

Elon could never afford that.

Elon can afford it. Twitter might not.

Maybe he can buy the loans at 50 cents. Or Howard Marks and Josh Harris might wind up owning Twitter.

 

[JoeB131]

View attachment 722391

Uh, guy, no one would accuse me of being pro-Zionist... and yet I find it concerning that the Saudis are buying up Twitter.

At some point, we need to really insulate our processes from foreign influences of any kind- Russian, Chinese, Saudi, Zionist.

 

[Ropey]

Elon can afford it. Twitter might not.

Maybe he can buy the loans at 50 cents. Or Howard Marks and Josh Harris might wind up owning Twitter.

Or maybe you're talking out of your ass again.

I go with that.

 

[Toro]

Compare that scenario to how Elon (And Calcanis, and David Sacks) actually framed their idea this week: (1) Leaked the proposal to scrap the old verification system and start charging power users $20/month for their previously-free verification badge. (2) bargained down to $8/month in a reply to Stephen Kingbecause “We need to pay the bills somehow!” (3) Insisted this was a grand populist move, describing the current setup as “Twitter’s lords and peasants system.” (4) Tweeting “you get what you pay for.” (5) Tweeting “To all complainers, please continue complaining, but it will cost $8.” (6) Retweeting David Sacks’s tweet “The entitled elite is not mad that they have to pay $8/month. They’re mad that anyone can pay $8/month.”​

This is maybe the worst imaginable way to frame the new Twitter Blue. Musk is effectively saying “hey, I spent $44 billion to own this thing, and have to come up with an extra billion per year to cover the debt payments. We’re all going to have to chip in to make this work. Don’t be cheapskates, alright?” Then he’s describing the power-users who are the platform’s most valuable asset (for free) as elitist snobs who need to start paying to keep the privileges they’ve been given.​

Predictably, this has not gone over well.​

Elon's Twitter-Tilt

Well, Elon’s first week running Twitter has gone worse than I expected. I said last week that I thought the platform would be pretty much unchanged in 1-3 months and then effectively dead within a year. Now it’s looking like it’ll be pretty different in 1-3 weeks and effectively dead within six...

davekarpf.substack.com