American billionaire Elon Musk denied a Wall Street Journal report about his intention to sell shares of Twitter to help pay off debts.
Elon Musk answered “no” when asked if the report of raising up to $3 billion to pay off Twitter’s debts is true.
The Wall Street Journal reported Wednesday that Elon Musk’s team is considering using up to $3 billion worth of stock to raise potential new money to help pay off part of the $13 billion debt used to buy the company, according to people familiar with this question. . . .
The newspaper said Musk was looking into raising the amount to help pay off Twitter’s debt, noting that talks with investors included a sale of new shares.
Elon Musk’s team discussed selling new Twitter shares to pay off high-interest loans as part of a $13 billion loan package to support the acquisition of the social media platform.
People familiar with this issue said that negotiations with representatives of Elon Musk took place in December.
The Tesla boss borrowed $13 billion to close the acquisition of Twitter in October 2022 from several banks, including Morgan Stanley and Bank of America.
A Wall Street Journal report debunked by Elon Musk says his team told people familiar with the company’s finances that the capital increase, if successful, could be used to pay off the unsecured portion of the debt that carries the highest interest rate under the Twitter loan package. in the amount of 13 billion dollars.
Sharp decline in Twitter ad spend in December
Today is Wednesday; Data from the Standard Media Index, an advertising research company, showed that advertising spending on the Twitter platform fell 71% year-on-year in December as major advertisers cut their spending on the social media platform following its acquisition by Elon Musk.
These numbers come despite Twitter’s attempt to reverse the migration of advertisers by launching multiple initiatives, offering some free ads, lifting its ban on political ads, and allowing companies to better control how their ads are placed.
It’s worth noting that, so far, 14 of the top 30 advertisers on Twitter have stopped all advertising on the platform since Musk took over the company in October, according to Pathmatics estimates.