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reddig33@lemmy.world to Enough Musk Spam@lemmy.world · 1 year ago

Elon Musk told bankers they wouldn’t lose any money on Twitter purchase

arstechnica.com

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Elon Musk told bankers they wouldn’t lose any money on Twitter purchase

arstechnica.com

reddig33@lemmy.world to Enough Musk Spam@lemmy.world · 1 year ago
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Lenders unlikely to get even 60 cents on the dollar for the bonds and loans.
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  • gravitas_deficiency@sh.itjust.works
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    1 year ago

    Frankly, if the banks call in his debts and he’s essentially forced to divest enough shares that he has to give up controlling interest in one or more of his other companies… it may be genuinely better in the long-term for those companies.

    • reddig33@lemmy.worldOP
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      1 year ago

      🤞

  • It's Maddie!@sh.itjust.works
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    1 year ago

    Lol and if Elon Musk says it, you can take it to the bank, where it will then lose a bunch of its value

  • Jaysyn@kbin.social
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    1 year ago

    Elon Musk lies about a lot of things.

  • magnetosphere@kbin.social
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    1 year ago

    I don’t care whether we’re talking about Musk or anyone else - any bank that lends money while taking into account the “personal guarantee” of the borrower has only themselves to blame for any losses.

    OF COURSE a potential borrower is going to make lending sound like a good idea. The borrower is as biased and impartial as possible. If anything, these banks deserve to get bit in the ass for being blinded by greed. Maybe the people who approved the loans shouldn’t have that authority.

  • rodolfo@lemmy.world
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    1 year ago

    it turns out he’s really determined to destroy Twitter: lying to banks it’s a big no no for one like him.

    otherwise he’s that kind of person many think he is.

    • Endorkend@kbin.social
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      1 year ago

      Lying to banks is exactly the thing that may get Trump finally convicted.

    • AllonzeeLV@lemmy.world
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      1 year ago

      Yep. Don’t fuck with our owners.

      That was Bernie Madoff’s mistake.

      • ttmrichter@lemmy.world
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        1 year ago

        Weird. And here I was thinking that Madoff’s mistake was running a huge Ponzi scheme.

        • evranch@lemmy.ca
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          1 year ago

          The mistake was who he targeted with said scheme, ripping off market investors on a broad scale and not just tricking foolish commoners out of their pension cheques.

          Most of these schemes are never publicized and barely punished white collar crimes, or actively ignored as MLM pyramid schemes are. Madoff made the mistake of going way, way too big and thinking he could get away with it.

        • AllonzeeLV@lemmy.world
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          1 year ago

          And Market Capitalism the largest pyramid scheme of all time, whats your point?

          https://ryangosha.medium.com/capitalism-is-a-pyramid-scheme-769cc882f6

  • Rentlar@lemmy.world
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    1 year ago

    You’re a sucker if you rely on Elon Musk telling the truth.

    • supercriticalcheese@lemmy.world
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      1 year ago

      Kinda stupid not to put an exit clause on the contract, instead of relying on his word. Ohh well, I am sure they will be fine!

  • ivanafterall@kbin.social
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    1 year ago

    Isn’t it illegal to guarantee returns?

    • HobbitFoot
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      1 year ago

      For stock, maybe. On bonds, no. Oh course, he probably still had to put up collateral.

  • cosmicrookie@lemmy.world
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    1 year ago

    It’s freedom of speech…/s

    • Potatos_are_not_friends@lemmy.world
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      1 year ago

      That was one of his defenses when he was fucking with the stock market, before he was forced to buy twitter.

      • Uncle_Bagel@midwest.social
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        1 year ago

        It’s his current defense now that the California DOT is on his ass for fraudulent marketing for Tesla Autopilot as well .

  • tacosanonymous@lemm.ee
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    1 year ago

    Why would the banks sell the debt? That asshole has the money to make the payments. If he doesn’t, they should start taking his collateral.

    • atocci@kbin.social
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      1 year ago

      Did he put anything up as collateral? They can’t just take stuff at random, can they?

      • Kethal@lemmy.world
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        1 year ago

        He put up shares of Tesla as collateral. https://www.washingtonpost.com/technology/2022/04/22/musk-twitter-financing-tesla/

        • olosta@lemmy.world
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          1 year ago

          These 13 billions were not loaned to Musk but to Twitter. So Musk has no obligation to personally honor those loans. The bank bought the story sold by Musk that he could make Twitter so profitable that the company could repay these loans.

          https://www.aljazeera.com/economy/2022/10/28/how-elon-musk-financed-his-twitter-takeover

          • atocci@kbin.social
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            1 year ago

            They loaned Twitter the funds to buy itself? The more I see the bigger this scam seems.

            • olosta@lemmy.world
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              1 year ago

              A perfectly common practice: https://en.m.wikipedia.org/wiki/Leveraged_buyout

              The buyer is not supposed to kill the value of the company this quickly though.

          • reddig33@lemmy.worldOP
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            1 year ago

            Can they seize Twitter and sell it to someone else?

        • atocci@kbin.social
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          1 year ago

          It’d be in the banks’ best interest to not sell the debt then, right? Unless they think they can get more for it than the shares are worth.

          • Kethal@lemmy.world
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            1 year ago

            This is will beyond my knowledge. I imagine if they seized his shares that would have a huge negative impact on TSLA stock price, potentially making them worth less that they could have sold the debt for. I think if he doesn’t pay, the banks are in for hurt no matter what.

            • atocci@kbin.social
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              1 year ago

              That’s a good point, it’s strange they accepted shares as collateral at all then if just claiming them can cause them to tank in value.

  • ZeroCool@feddit.ch
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    1 year ago

    Hahahahahahahahahahaha

  • mateomaui@reddthat.com
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    1 year ago

    Who would even buy this debt if they wanted to sell? There’s no sign of the situation improving.

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