This debt was issued in October 22, and now, over two years later, the discount of 5-10% in the secondary debt market doesn’t seam that it’s discounted enough, considering the X equity was marked down by 71% by Fidelity about a year ago.
#econsky
Can someone explain this to me like I'm a freshman in high school? How does debt get generated when you take a company private? Why are they selling the debt and who would buy it and what would the benefit be of it?
Just like you borrow money to buy a house, you can borrow money to buy a public company and take it private. Why anyone else would buy this dogshit debt is beyond my understanding.
The only rational motive I see in buying this (utter garbage) debt at this price would be to have some leverage over Musk (and his access to the White House).
I can already see them spinning the news saying "twitter was already dying when Elon tried to save this train wreck that's why they were selling it in the first place"
I'd take more pleasure in it if that 44b + 250m investment in Trump hadn't led to him gaining 100b from the Tesla stock gain post election. These fuckers always end up coming out spotless.
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#econsky
https://observer.com/2024/08/investors-backing-elon-musk-44b-twitter-acquisition/#:~:text=The%20list%20of%20stakeholders%20backing,in%202022%20for%20Musk's%20takeover.
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https://bsky.app/profile/edhirsch.bsky.social/post/3lfvwnvvius2i