Yeah, it’s only a death warrant for conventionally run companies. He can run it into the ground as deep as his pockets will let him. And according to Forbes that’s still relatively deep, deeper than they should be anyway.
I kind of suspect he’s up to something. Maybe he’s grooming it for a political ad platform. Although it’s equally possible he just loves watching everybody flip the hell out, One hell of an expensive hobby if so.
It’s no longer a public company. So it can be bought when Musk chooses to sell. Or if he defaults on his loan then it may go to banks but they really don’t want it and have already written off their loan to him.
Why exactly do normal people with small defaults have ‘collection agents’ sent after them, while billion dollar defaults are written off? Isn’t that supposed to be the other way around?
It’s all to do with the terms of the contract and collateral.
Bonds are guaranteed by the collateral of the ownership of the company. If the company defaults on their loan, then ownership transfers to the bond holders, so the bond holders now own all the equity in the company (and previous equity holders get nothing.)
There are no collections agents for companies because once they default, all of that is essentially triggered automatically contractually. There’s a bit of wiggle room with negotiating changing terms on the loans and such before a default happens, but that’s the broad strokes.
because it’s easier to come after real people, since we don’t know all loopholes, can’t jerk them around indefinitely, have no individual power, can’t afford lawyers, and are all around an easier mark.
Inertia. In the UK, for example, every local government council, the NHS, central government, charities etc use user Twitter//X as a free channel for announcements and publicity. Quite often they manage it though things like Hootsuite that lets the, plan and manage and cross-post to Facebook etc.
Deciding to quit that is quite a major step - especially when there isn't really a clear single alternative that has similar reach and userbase.
Except that they've ruined that too. You now need an account to view anything, so the reach of announcements is greatly diminished.
At this point leaving shouldn't really be too difficult, since a large portion of your audience already has; because they've been shut out, or have quit voluntarily.
I read about where the money came from and I’m not saying I really understand it, but it seems solid enough for it to never fail unless musk wants it to fail.
Which is, like,…if somebody wants to destroy twitter as fast as possible, but make it look like it’s not intentional, what would they do differently than what is happening right now? :) Jk, musk is just an incompetent bag of shit.
The money used to come from advertisers. Elon has been trying to move it to a subscription model, but few people want to subscribe to a place only right wingers want to be.
Elon wanted Xitter to be a bastion of right wing speech. He just didn't think about what that would entail.
It was always going to fail. At that point, Twitter as a company only recently started actually making a profit. What Musk did is called a leveraged buy-out where someone takes out a loan to buy a company. The company that is bought out is then responsible for paying that loan. Remember when I said they just barely had started making money? Well, now they have so much debt that they not only have to make enough money to cover their previous expenses, but also cover the payments for this new loan, and the new loan has interest that creates additional debt of $1 billion a year. How is a company that struggles to make money suddenly going to come up with an extra $1 billion a year? Charging for checkmarks? There aren’t enough users… That’s why he is so desperate. He knows that by making that joke offer, he royally screwed himself when Twitter called his bluff and forced him to buy. I think he just wanted an excuse to sell some Tesla stock that he knew was overvalued but had said he wouldn’t sell.
I don’t know, as far as I understand it, all the money sources are covered quite well, he can literally do whatever and there won’t be much consequences.
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