X Debt Sale Looms as Musk Grapples with Stagnant Growth and Ad Revenue Woes
X's financial difficulties: The impending debt sale signals financial pressure.
Matilda
X Debt Sale Looms as Musk Grapples with Stagnant Growth and Ad Revenue Woes
Wall Street banks are preparing to offload a significant portion of the debt used to finance Elon Musk's acquisition of Twitter (now X), signaling potential financial distress for the social media platform. The Sale: Leading the charge is Morgan Stanley, aiming to sell a portion of X's senior debt at a steep discount, likely between 90 and 95 cents on the dollar. This move reflects the challenges faced by banks in holding onto high-risk debt, especially during periods of economic uncertainty and market volatility. X's Troubled Waters: Since Musk's tumultuous takeover in late 2022, X has been plagued by a series of controversies. The departure of advertisers, a crucial revenue stream, has been a major concern. Concerns over the proliferation of hate speech and misinformation on the platform have driven major brands away, fearing reputational damage. Musk's Acknowledgement of Struggles: In a recent internal email, Musk acknowledged the company's current predicament: &q…
