Elon Musk's team is seeking new investors for Twitter | Hacker News Reader

Elon Musk's team is seeking new investors for Twitter

semafor.com

Here is my best guess at what will actually happen: Elon will find a friendly investor who will value the equity at non-zero, despite creditors needing to write down the value of the LBO debt.

That friendly investor has to know they are shoeling the money into an ongoing dumpster fire. But it will hold off the creditors for one or two quarters.

I am trying to figure Elon's debt capacity. The most recent info I found is months old: https://www.forbes.com/sites/johnhyatt/2022/04/28/elon-musk-...

That article claims he has already pledged more than 90% of then-more-valuable Tesla shares against loans. When do margin requirements start to pinch?

At the current rate he's burning through his Tesla stock: quite soon. Another 3.5 B$ worth this week and that's the second batch in a very short time.

Why is he needing to sell off so fast? I thought we were talking like a billion per year in interest. Is this purely about margin calls because his TSLA collateral has lost sufficient value?

That's likely one part of it, another part of it is that Musk knows Tesla's real value like no other person in the world and may well have come to the conclusion that with the competition ramping up for real now is the best time to sell his still overvalued stock.

Has anyone reevaluated his net worth?

TIL the etymology of https://en.wikipedia.org/wiki/Pig_in_a_poke

When the banks holding the debt are taking a bath marking it to market, investing in equity of the same firm seems ... brave.

Matt Levine tweeted "he's gonna place some equity at 100 while his banks can't get 60 for the debt." Elon's cult does strange and wonderful things with its money sometimes.

Elon has to find a way to monetise his fanatics before he loses some of them when Twitter tanks.

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