Richard Signorelli: Expect a bankruptcy filing soon and Musk losing control of Twitter

[highplainsdem]

Signorelli is apparently basing this at least partly on a WSJ article, which is behind a paywall:

Link to tweet

Link to tweet

Expect a bankruptcy filing soon & possibly Elon Maga losing control which is the only way to save the company for obvious reasons.
At Twitter, Musk faces 3 challenges: Navigating a decline in revenue, cutting costs & managing company’s debt pile https://wsj.com/articles/how-elon-musks-twitter-faces-mountain-of-debt-falling-revenue-and-surging-costs-11669042132?st=qewt8c72rvbm42r&reflink=desktopwebshare_twitter via
@WSJ


There are $20B reasons for his lenders & co-investors to get rid of Elon Maga who only put in about $25B of his own $. He is clearly not competent to run the company and they are starting to see the obvious.

[bucolic_frolic]

1. No idea how this will play out

but seems I recall from reading financial stories over the years, many a bankruptcy is handled by Judge Emmett Sullivan in DC.

The panic with which this has imploded? Quick segue to off-load debt in bankruptcy court? And buy it back on the cheap? Eddie Lampert taking notes?

[sarcasmo]

2. How to bankrupt a website by Elon Musk.

[ProudMNDemocrat]

3. Putting "Let's Blow this pop stand" into perspective.

Tesla is having problems. Space X is having problems. Twitter is not tweeting any better under Musk's ownership.

Something in the water? Tune in at 11 for more news.

[cojoel]

4. A big issue not mentioned in the article

is staff alienation. There aren't enough qualified people to operate the business at this point.

[Beastly Boy]

5. Ever since Musk actually paid $44 bil for twitter, I had a hunch that

everything he does is a deliberate effort to bankrupt the company.

He grossly overpaid for it, and there is no way for him to get his money back to pay what he owes. I believe his plan now is to cut the losses with one of the few options he has left now: declare Chapter 11, stiff his creditors for the money they lent him or earned, and then sell what's left of the company piecemeal. The brand Twitter may be worth more than the rest of the company's assets put together, and Musk owns it. He can sell it to the highest bidder after the company emerges fron Chapter 11.

[LastDemocratInSC]

6. It sounds like the Bain Capital technique of "strip it and flip it"

[Beastly Boy]

7. Exactly. Apparently, there is a lot of money to be made this way.

And easier than running a real business. I hear Tesla is doing pretty badly. I will not be surprised to see it on the chopping block next.