Elon Musk Considers Raising $3 Billion to Pay Off Part of Twitter Debt: Report

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Elon Musk’s group has been exploring utilizing as a lot as $3 billion in new fundraising to assist repay among the $13 billion in debt tacked onto Twitter for his buyout of the corporate, the Wall Road Journal reported on Wednesday, citing folks aware of the matter.

Based on the report, Musk’s representatives mentioned promoting as much as $3 billion (roughly Rs. 1,06,000 crore) in new Twitter shares in December.

Twitter didn’t instantly reply to a Reuters request for remark. Responding to a query whether or not the WSJ report was correct, Musk mentioned “no” in a tweet.

The Tesla boss borrowed $13 billion (roughly Rs. 24,465 crore) to shut the Twitter acquisition in October from a syndicate of banks together with Morgan Stanley and Financial institution of America.

Musk’s group has advised folks aware of the corporate’s funds that an fairness increase, if profitable, might be used to pay down an unsecured portion of the debt that carries the very best rate of interest inside the $13 billion Twitter mortgage bundle, the report added. .

In the meantime, promoting spending on Twitter dropped by 71 % in December, information from an promoting analysis agency confirmed, as high advertisers slashed their spending on the social-media platform after Elon Musk’s takeover.

The current information by Commonplace Media Index (SMI) comes as Twitter is transferring to reverse the advertiser exodus. It has launched a slew of initiatives to win again advertisers, providing some free adverts, lifting a ban on political promoting and permitting corporations larger management over the positioning of their adverts.

Based on the SMI information, advert spending on Twitter in November fell 55 % from final 12 months regardless of these months historically being a time of upper advert spending as manufacturers promote their merchandise through the vacation season.

© Thomson Reuters 2023

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