Elon Musk has to make the first interest payment on the $13 billion debt he took on to buy Twitter – and the company's dire financial situation means it faces risks including bankruptcy
Elon Musk may be facing the first interest payment on the debt he took on to buy Twitter as early as this month, according to aAnd given Twitter's high level of indebtedness, the world's second-richest man may have to weigh options including the sale of moreshares to finance the repayment – or even initiating bankruptcy proceedings for the struggling social media company, the newspaper said.
The debt is held by Twitter, rather than Musk personally – and the company is required to pay back around $1.5 billion a year in interest payments, according to the Financial Times. As an alternative to bankruptcy, Musk could sell more of his Tesla shares, having already offloaded nearly $40 billion to help finance the takeover deal, or use Twitter's limited cash reserves to pay off the debt.
He has repeatedly sounded the alarm about Twitter's finances and floated the possibility of filing for bankruptcy to restructure its debt.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk's Twitter deliberately cut off Tweetbot, other apps: reportTwitter deliberately suspended Tweetbot and other third-party apps, forcing people to use the platform's official app, report says
Read more »
Elon Musk just changed his Twitter bio to 'state-affiliated media'Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Third-party Twitter apps are broken, and Elon Musk is silentSome of the most popular Twitter third-party clients are not working as they can't connect to the company's service. Musk is silent.
Read more »
Taliban Officials & Supporters Buy Blue Ticks On Elon Musk’s TwitterTaliban officials and supporters have been buying blue ticks on free speech warrior Elon Musk’s Twitter. According to a BBC investigation, at least two Taliban officials and four prominent su…
Read more »
Elon Musk drama shifts from Twitter, to tweets about TeslaLong before beleaguered billionaire Elon Musk purchased Twitter in October, he had set his sights on Tesla, the electric automaker where he serves as CEO and from which he derives most of his wealth and fame.
Read more »
Elon Musk drama shifts from Twitter to Tesla tweetsWhile still grappling with the fallout from a company he did take private, beleaguered billionaire Elon Musk is now facing a San Francisco trial over a company he didn't.
Read more »