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Elon Musk's Twitter takeover has ended up as the worst buyout deal for banks since the financial crisis (www.businessinsider.com)
submitted 4 weeks ago by MicroWave@lemmy.world to c/economics@lemmy.world
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  • Elon Musk's Twitter acquisition ended up being the worst financing deal for banks since 2008, the WSJ said.
  • The $13 billion in loans Musk took out have been stuck on banks' balance sheets.
  • The loans have cut into pay for bankers and lenders' ability to finance other deals, the Journal reported.
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[-] AA5B@lemmy.world 1 points 3 weeks ago

The bank cares because

  • he can’t sell $13B in stock without crashing the value - he can’t pay it off fast
  • someone with that much ownership has serious restrictions on how they can sell. Again, limiting ability to pay off loans
  • banks generally don’t keep loans, they originate and sell. But no one will buy with those restrictions
[-] Blue_Morpho@lemmy.world 1 points 3 weeks ago

It was 2 years ago. Interest payments are continuous, not sudden. If he owed money he would sell a little every month to pay the loan. Yes it would lower the price. The bank doesn't care, they are being paid.

Yes large ownership sales are filed quarterly. It's not a surprise loan. The payments are due monthly.

this post was submitted on 21 Aug 2024
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