Thread: Twitter purge
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Old 2nd December 2022, 12:57     #104
Ab
A mariachi ogre snorkel
 
A theory I heard on the "Pivot" podcast: Elon borrowed a lot of money to finance the Twitter buyout. Twitter burning is bad for those banks. The worse Twitter goes, the worse that investment was. At some point Twitter will be so shit that those banks will consider selling that debt just to get it off their books. Elon could buy that debt and thus rather than owe money to some banks he would owe money to himself (more or less). According to this theory, Elon has a short-term motivation to tank Twitter like a sports team jockeying for future draft picks. The worse Twitter goes the better this debt-buyback deal is for Elon so long as he can a) front up the money to buy the debt from the banks, and b) instantly turn Twitter around and make it generate revenue once he's bought the debt.

That's the theory, anyway.
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