this post was submitted on 23 Jul 2023
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Musk's new idea (slrpnk.net)
submitted 1 year ago* (last edited 1 year ago) by BlackRose@slrpnk.net to c/technology@lemmy.world
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[–] dragontamer@lemmy.world 1 points 1 year ago

Not quite. The the $33 Billion of equity Elon Musk put up junior to the $13 Billion loan.

That means that if the company starts at $44 Billion then falls to $15 Billion, then Twitter still owes $13 Billion, but Elon Musk only has $2 Billion now.

Leveraged buyouts are... well... levered. It grossly increases the risk of losing everything.