Banks on Wall Street are drafting a plan to sell the debt supporting Elon Musk’s $44 million social network venture. Respected financial firm, Morgan Stanley, is preparing to lead the sale, purportedly offering senior debt at just 90 – 95 cents to the dollar, as per Wall Street Journal reports.
Debt retention is not a long-term strategy for bankers, though unpredictable periods can alter those plans. Most recently, the fluctuation and ambiguity surrounding Musk’s purchased platform ‘X’, has thrown the situation into turmoil as concern from advertisers regulates their involvement. They worry that the network’s extremist content could tarnish their brand image. While insiders suggest that the financial situation at ‘X’ is stabilizing, Musk contradicted this in a recent internal email by stating, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”
Musk has underscored ‘X’s’ influence in shaping national discourse and outcomes, but this has not seemingly swayed advertisers to return in numbers. A questionable gesture by Musk at President Trump’s inaugural celebration perceived as a fascist salute, may place a further strain on the network’s appeal to large brands.
Original source: Read the full article on TechCrunch
