Banking institutions that lent Elon Musk About $13 billion for acquisition Twitternow known as sIt faces losses estimated at $2 billion, according to The Wall Street Journal. The decline in the value of the platform under the leadership of Musk, the richest man in the world, led to expectations of an impact of at least 15% for banks such as… Morgan Stanley, American bank And Barclays.
The purchase of the social network, which cost $44 billion a year ago, has become one of the largest and longest “broken deals” given the actions of the Tesla CEO, including renaming it to… s Questionable management has caused the platform’s value to decline and deterred advertisers.
according to Interested in tradeBanks had hoped to sell the debt, but are now preparing to cancel parts of it in the face of a possible lower credit rating.
Marketing consultant equality This week I reported that most major advertisers have stopped advertising on s After its acquisition musk. Utopia He notes that app downloads dropped by about 30% between July and September. At the same time, devotionan asset manager that owns a stake in the company, has cut its valuation Twitter by two-thirds, making the company’s value approximately US$15 billion.
The banks began preparing to settle the debts, according to what sources close to the deal said The Wall Street Journal. s Bonds can receive a junk rating, indicating the risk of loan default. For banks such as Morgan Stanley And American bankWhich owns the largest stocks, this scenario would mean losses of hundreds of millions of dollars.
Despite the disastrous odds, Musk and C.E.O Linda Yaccarino They remain firm on that s It will be profitable in 2024. If this is true, it will encourage banks worried about losses.
Yaccarino said in September that the company is close to reaching operating break-even and expects to be profitable early next year. The statement came during Code conference in orange county, CaliforniaHe answered questions related to the company’s decline following the turmoil witnessed by the new owner’s management.
Since joining the company, the CEO has faced challenges on how to rebuild the company’s business. safter massive staff cuts and radical policy changes it implemented musk. Despite some tension in the conversation, she mentioned that the social network has more than 540 million global users and turned questions about specific statistics toward the company’s vision and transformation.
Although some brands, incl Mondelez International And pharmaceutical Eli LillyAfter returning to the platform, some advertisers continue to show hesitation, due in large part to instability on the site. despite this, Yacarino He maintained his upbeat tone, announcing that nearly 1,500 advertisers had returned to the platform.
“Social media evangelist. Student. Reader. Troublemaker. Typical introvert.”