Reports indicate that bankers are getting ready to sell off debt that was used to finance Elon Musk’s social network. Musk acquired the network for $44 million in 2022, with $13 billion in financing. Morgan Stanley is spearheading this effort, aiming to sell senior debt at a discount between 90 and 95 cents on the dollar, according to WSJ.
The volatile nature of X following Musk’s takeover has caused concern among advertisers, leading them to withdraw due to worries about the platform’s extreme content affecting their brands. Despite reports suggesting an improvement in X’s financials, Musk’s own statements to staff in a January email obtained by WSJ paint a different picture, with Musk noting slow user growth, lackluster revenue, and barely breaking even.
In the same email, Musk acknowledged X’s influential role in shaping national conversations and outcomes. However, the platform’s appeal to advertisers remains uncertain. Additionally, a controversial gesture made by Musk at President Trump’s inaugural event, interpreted by many as a fascist salute, could further complicate matters for major brands, as reported by AP News.
