Elon Musk's Twitter Takeover Seen Swelling the Company's Debt

[mahatmakanejeeves]

If Elon Musk completes his $44 billion acquisition of Twitter, the social-media platform will add about $13 billion of debt, adding pressure to grow sales

wsj.com
Elon Musk’s Twitter Takeover Seen Swelling the Company’s Debt
The social-media platform’s annual interest burden will climb to more than $1 billion from $51 million last year, analysts estimate, adding

Link to tweet

[multigraincracker]

1. Or cut the hell out of cost.

Plan B, take the money and run.

[RainCaster]

2. Apparently he plans on a 75% layoff

That's one way to kill a company.

[JohnSJ]

3. It doesn't seem that the stockholders of Tesla are too happy with his shenanigans

[bucolic_frolic]

4. Adulterating the product to fund takeovers is standard operating procedure

Every quality product that gets bought out goes downhill in quality, durability, service. Paying the MBA's forces owners to reduce costs to pay for the personnel and new debt load. They trade off the brand name of the product until the public notices, then sales plummet so they load the ship with debt and pay the money to the owners and let the company go bankrupt. Then it gets bought out of bankruptcy court and the debt cycle rinses and repeats a couple times. Sell off the remaining good parts and shareholders can be soaked with the carcass in a final trip to bankruptcy liquidation. This is innovation, growth, maturity, decline, and end-cycle.