Only thing scarier than being invested in a stock that drops hard is being invested in a stock that keeps dropping faster pic.twitter.com/DKdPXdRz1F
— chatham harrison is tending his garden (@chathamharrison) December 27, 2022
🧵Who's funding @elonmusk's Twitter and what do they get in return?
Read free: https://t.co/7tvh6kLpcz
— Richard Hine (@richardhine) December 26, 2022
Now more than ever, a most interesting read:
… On a Twitter audio chat recently, Musk cited the company’s precarious financial position as a driver of his aggressive job cuts and drastic actions, adding “we have an emergency fire drill on our hands.”
That’s making at least some of his investors in the deal antsy, according to people familiar with the matter who spoke on the condition of anonymity for fear of retribution. Last week, at least a couple of the original investors received letters from a Musk associate soliciting additional investments, according to two people familiar with the matter, although it was unclear if that would proceed.
Here’s who initially invested in the deal, and what we know about why:
Prince Alwaleed bin Talal al Saud
Estimated Contribution: $2 Billion…
The Qatar Investment Authority
Estimated Contribution: $375 Million
Estimated Contribution: $500 million
… The exchange’s executives have said they support Musk’s desire to curb the presence of bots on the platform. They have also said they see Twitter as an opportunity to research and develop crypto-related technology and services, including payments and authentication. The crypto company, founded in China, has no headquarters and has drawn the scrutiny of regulators in the United States, Britain and Japan.
What they get: As part of the deal, anyone who invested $250 million or more gets special access to confidential company information. But giving that privilege to foreign investors is raising flags with Biden and U.S. officials. Of particular interest is whether that includes access to personal data about Twitter’s users since several of the entities are entwined with governments that have a history of cracking down on dissidents on Twitter and other online platforms…
Estimated Contribution: $400 Million…
Estimated Contribution: $800 Million…
Estimated Contribution: $ 1 Billion…
Estimated Contribution: $1 billion
Morgan Stanley, Bank of America, Barclays
Estimated Contribution: $13 billion…
What they get: While these banks won’t hold the same type of sway over Twitter, they are a powerful weight on the billionaire, who will owe roughly $1 billion in interest a year. Musk has also at times last year put more than half of his Tesla shares down as collateral on loans, according to financial filings, worth tens of billions of dollars. But Tesla has slumped roughly 65 percent this year, highlighting both the risks facing tech companies in a downtrodden market and the danger of loading a slow-growth company like Twitter with too much debt. The banks helping to finance his Twitter deal would play a huge role if the company ever goes under…
'As part of the deal, anyone who invested $250 million or more gets special access to confidential company information. But giving that privilege to foreign investors is raising flags'
Nothing to see here.
— debbiep (@helphelpandhelp) December 26, 2022
thing is: if you accept the cratering as a reversion to proper market valuation, what events can you imagine to reverse the skid? tesla has been caught in countless lies, their leader is a redpilled manbaby, they aren’t innovating in the market space, they face robust competition https://t.co/7fwxlHFFMt
— kilgore trout, death to putiner (@KT_So_It_Goes) December 27, 2022