Wait, how is Twitter going to be paying for the interest regarding the loans that Elon took out? Because from my understanding, that type of acquisition, where you let the entity getting acquired take out the loan required for the acquisition, is WILDLY illegal in almost every single country I can think of.
borrowing a bunch of money to buy out a company and then selling off it’s assets to pay off the owners while saddling it with liabilities from that debt is sort of the defacto move for corporate raiding in the US. the bank debt is paid off first, then shareholders. https://en.wikipedia.org/wiki/Corporate_raid
this was like Bain Capital/Mitt Romney’s whole raison d’etre. which, because america is a propagandized shithole, rubes think the savvy it takes to organize and execute this kind of move makes someone a “good businessman” and therefore an “effective, efficient leader”. when, straight up, it’s evidence of the exact opposite. literally, these are people who know how to undermine an organization, extract any material value from it, and jettison its labor force into a vacuum. you can guess what happens to employee pensions under these scenarios.
I thought that for a Leveraged Buy Out, crucially the TarCo did not end up with the debt, unless you did some weird kind of financial engineering and ended up with a debt pushdown. But a Debt Pushdown requires the Target to have some amount of free reserves / freed capital that can be paid out to the shareholders. From reading the original tweets, I thought that Twitter had put up the colateral for the acquisition, which is the part that is incredibly illegal, at least in my jurisdiction.
critical support to elon musk for stripping the copper wire out of that dogshit website
Don’t worry twitter will make more money when it’s rented out for propaganda. Yes, the platform is already rife with it but the difference is that Elon and a private board weren’t profiting (enough) from it. Then also there’s the inevitable monetization of the free speech he’s promising. Get ready for twitter gold. Someone will tweet the n-word and it’ll get gilded which means it can’t be removed.
Looks like the only viable market is a pivot to adult content.
Since a bunch of the other twitter-like sites got knocked down by SESTA/FOSTA, I’m wondering if Congress just cleared a space for a social media monopoly.
A number of alt-twitter sites - Mastadon’s Switter, Backpage, others I can’t think of right now - got crushed by the DOJ in the last few years.
That’s consolidated the number of options for personal advertising significantly.
