Bankers are reportedly making plans to offload the debt used to fund Elon Musk’s $44 billion acquisition of X (formerly Twitter), which included a hefty $13 billion in financing.
Morgan Stanley is reportedly taking the lead in these efforts, hoping to sell senior debt at a price between 90 and 95 cents on the dollar, according to the Wall Street Journal.
Typically, bankers don’t hold onto debt for extended periods, but periods of market volatility can force a change in plans. Volatility has certainly defined X since Musk’s takeover, with advertisers pulling back due to concerns that the platform’s extreme content could harm their brands.
While sources told the Journal that X’s financial situation is improving, Musk himself painted a more bleak picture in a January email to staff, acknowledging that “user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”
In the same email, Musk highlighted X’s “power” in influencing national conversations and outcomes. However, it remains uncertain whether this influence is enough to win back advertisers. Adding to the uncertainty, a controversial gesture Musk made at President Trump’s inaugural celebration, which many interpreted as a fascist salute, could further complicate the situation for brands considering a return to the platform.
