Bankers are reportedly preparing to get rid of the debt used to finance Elon Musk’s social network, for which he paid $44 million in 2022, including $13 billion in financing. Morgan Stanley is leading the charge, hoping to sell senior debt between 90 and 95 cents on the dollar, the WSJ reports.
As the outlet points out, bankers typically don’t hold debt for years, but volatile periods can impact those plans, and volatility has defined X since Musk’s takeover, with advertisers scrambling to fear that Extreme content on the platform could harm their brands. Although Journal sources say X’s finances are improving, Musk himself told employees in a January email seen by the WSJ that “our user growth is stagnating, our revenue is not not impressive and we are barely breaking even. ยป
Musk reportedly observed in that same email X’s “power” to “shape national conversations and outcomes.” However, it is not certain that its power will attract advertisers again. Meanwhile, a gesture made by Musk during President Trump’s inaugural ceremony, which many interpreted as a fascist salute, could further complicate the equation for big brands.
