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> “Regarding Twitter’s reduction in force, unfortunately there is no choice when the company is losing over $4M/day,” Musk tweeted on Friday.

The real question here is probably why anyone would pay 44 billion dollars for a company losing 4 million dollars per day. I mean, it's not some promising startup, it's a company that's been around for a while and has only managed to be profitable for 2 years out of the last 12 (https://www.statista.com/statistics/274563/annual-net-income...)?




$3M of that daily loss is just in paying interest on the $13B of debt he loaded up the company with to pay off the old shareholders


Ah, the good (?) old hedge fund "you pay us for buying you" technique (I'm sure there's a fancier name for it, IANAInvestor).


“Leveraged Buyout”.

Why other investors allow the buyer to assign the debt to the company being bought rather than the buyer alludes me, as I’d assume this weakens the collateral securing the debt.


Leveraged buyout


Take note of the detailed proposal: https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/ee07b45... (from https://www.zdnet.com/article/musk-did-not-seek-due-diligenc... ) : page 49

"Mr. Musk also disclosed that his acquisition proposal was no longer subject to the completion of financing and business due diligence"

For whatever reason, probably his rising annoyance with Twitter, he decided to skip due diligence and rush the deal.




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