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Emrys

(8,189 posts)
Sun Jan 26, 2025, 07:32 PM Jan 26

In Leaked Email, Elon Musk Admits Defeat on Twitter

"Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even."

Cutting Losses

Banks that loaned multi-hyphenate billionaire Elon Musk an appreciable $13 billion for his ill-advised $44 billion acquisition of Twitter in late 2022 are getting ready to offload billions of debt they accrued as a result, the Wall Street Journal reports.

The hope is to minimize the hurt as they sell off the debt, a massive scar haunting the mercurial CEO's disastrous social media platform shopping spree.

After a chaotic couple of years, and Musk seemingly doing his best to wipe out what was left of the platform's largely ad-dependant revenue with increasingly erratic behavior, X-formerly-Twitter's finances have yet to recover. The company is still drowning in accumulated debt while loaners are struggling with massive payments.
...
Now that Musk has catapulted himself onto the political world stage by throwing himself at Trump's feet, banks are seemingly seeing the moment as an opportunity to sell their debt without incurring huge losses.

https://futurism.com/the-byte/leaked-email-elon-musk-defeat-twitter
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In Leaked Email, Elon Musk Admits Defeat on Twitter (Original Post) Emrys Jan 26 OP
Yeah whatever. Think. Again. Jan 26 #1
Sorry to see that he is breaking even. Wonder if that is just day to day or including the debt? So well deserved! dutch777 Jan 26 #2
Similar stories have appeared in other outlets Emrys Jan 26 #3
You got a mouse in your pocket, Elon? tanyev Jan 26 #4
Banks are dumping this debt at a discount RainCaster Jan 26 #5

dutch777

(3,855 posts)
2. Sorry to see that he is breaking even. Wonder if that is just day to day or including the debt? So well deserved!
Sun Jan 26, 2025, 07:38 PM
Jan 26

Emrys

(8,189 posts)
3. Similar stories have appeared in other outlets
Sun Jan 26, 2025, 07:54 PM
Jan 26

Here's a selection:

Elon Musk email to X staff: ‘we’re barely breaking even’ - https://www.theverge.com/2025/1/24/24351317/elon-musk-x-twitter-bank-debt-stagnant-growth

Elon Musk Tells Employees X Is 'Barely Breaking Even' - https://www.pcmag.com/news/report-musk-says-x-is-barely-breaking-even-in-letter-to-employees

The Cheat Sheet on Trump’s First Week - https://www.nytimes.com/2025/01/25/business/dealbook/trump-first-week.html

Musk disputes reports that he is dissatisfied with business of X - https://finance.yahoo.com/news/musk-disputes-reports-dissatisfied-business-141424343.html

Meanwhile, on Twitter Musk categorically denied sending the email:

X Daily News
@xDaily

NEWS: The WSJ has leaked an email Elon sent to X staff this month:

"Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even", Elon wrote.

Despite the downbeat tone, this appears to confirm that as a business X is no longer losing money, a consistent worry in the first two years post-acquisition.

Elon added in the email: "“Over the last few months, we’ve witnessed the power of X in shaping national conversations and outcomes" and “We are also seeing other platforms begin to adopt our commitment to free speech and unbiased truth,”

This comes as Wall Street banks are preparing to sell billions of dollars in debt holdings in X.



Elon Musk
@elonmusk

This report is false. I sent no such email.

WSJ is lying.


I guess a number of Twitter employees will now know whether Musk or the WSJ is the bigger liar. If the story provess to be untrue, it'll be ironic given Musk's track record, which includes allegations of market manipulation and insider trading in relation to Twitter and Tesla, sometimes involving strategic loose talk on social media.

RainCaster

(12,185 posts)
5. Banks are dumping this debt at a discount
Sun Jan 26, 2025, 08:22 PM
Jan 26
https://www.democraticunderground.com/?com=view_post&forum=1014&pid=3380340

The banks are losing on the order of $130M on this deal. I sure hope the banks keep that in mind when they loan him more money.
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