ZooOga:


The highly esteemed Financial Times says Mr Musk has his work cut out for him.

Elon Musk/Twitter: messy finances raise prospect of bankruptcy
Chief’s forecasts give social media company less than a year before it needs more funds


If Elon Musk’s off-the-cuff financial statements are accurate, Twitter’s creditors should brace themselves for a potential default. On Tuesday, the billionaire entrepreneur made an impromptu appearance on the platform’s live audio service and told listeners the situation was “not good”. 

Musk cast himself in the role of austerity saviour, saying that before his cost cuts Twitter’s outflows were set to reach $6.5bn next year, including interest payments. His forecast of $3bn in revenue and $1bn in cash gave Twitter less than a year before it needed to raise more funds or risk missing payments.

Job cuts lower outflows, albeit that redundancy payments will eat into savings. Musk has removed half the workforce. Others have left voluntarily and workers are under order to find $1bn in infrastructure savings. If he can halve costs, Musk can push the crunch point forward to early 2024.

Of course, costs may rise, eroding that advantage. Twitter has $12.5bn of debt as the result of Musk’s leveraged buyout, creating $1.5bn of annual debt servicing costs. Twitter is, by extrapolation, paying an eye-watering interest rate of around 12 per cent. This is partly because of rising rates but it is also a marker of the high risks perceived by lenders. Intangibles and short-term investments make up a large proportion of Twitter’s assets. Most of the debt is unsecured.

Banks still appear to have underestimated the problems ahead. The company has not reported an annual profit since 2019. But at least revenue was growing before Musk arrived. Now it is forecast to drop 40 per cent from 2021, the last full year of results prior to the takeover. The fall reflects a worse exodus of advertisers than rivals have experienced. S&P Global expects social media peer Snap to report 23 per cent revenue growth over the same time period.

This is Musk’s fault. Advertisers are unhappy that his relaxation of moderation has increased the risk of adverts appearing alongside abhorrent content.

Investors, including Musk, could lose their equity. Filing for Chapter 11 bankruptcy would allow the company to reorganise and even raise new funds to support ambitious Super App plans. But creditors would have to agree. They could also take control of the company.

Musk may opt to buy the debt himself. But if banks offload it elsewhere, Twitter may end up in the hands of distressed debt funds. From frying pan to fire in one easy flip.

https://www.ft.com/content/59649af9-2538-4121-af3c-f35b337522c4?ftcamp=traffic/partner/feed_headline/us_yahoo/auddev

Obrigardo:
Zelensky with a real historic President. I mean Biden of course

feedthenation:


https://twitter.com/i/status/1605641380449001473

Obrigardo:


Wallpaper view

feedthenation:


---Tucker Carlson and FalseNews won't be happy about the Biden-Zelenskyy photo---

ZooOga:


The highly esteemed Financial Times says Mr Musk has his work cut out for him.

Elon Musk/Twitter: messy finances raise prospect of bankruptcy
Chief’s forecasts give social media company less than a year before it needs more funds


If Elon Musk’s off-the-cuff financial statements are accurate, Twitter’s creditors should brace themselves for a potential default. On Tuesday, the billionaire entrepreneur made an impromptu appearance on the platform’s live audio service and told listeners the situation was “not good”. 

Musk cast himself in the role of austerity saviour, saying that before his cost cuts Twitter’s outflows were set to reach $6.5bn next year, including interest payments. His forecast of $3bn in revenue and $1bn in cash gave Twitter less than a year before it needed to raise more funds or risk missing payments.

Job cuts lower outflows, albeit that redundancy payments will eat into savings. Musk has removed half the workforce. Others have left voluntarily and workers are under order to find $1bn in infrastructure savings. If he can halve costs, Musk can push the crunch point forward to early 2024.

Of course, costs may rise, eroding that advantage. Twitter has $12.5bn of debt as the result of Musk’s leveraged buyout, creating $1.5bn of annual debt servicing costs. Twitter is, by extrapolation, paying an eye-watering interest rate of around 12 per cent. This is partly because of rising rates but it is also a marker of the high risks perceived by lenders. Intangibles and short-term investments make up a large proportion of Twitter’s assets. Most of the debt is unsecured.

Banks still appear to have underestimated the problems ahead. The company has not reported an annual profit since 2019. But at least revenue was growing before Musk arrived. Now it is forecast to drop 40 per cent from 2021, the last full year of results prior to the takeover. The fall reflects a worse exodus of advertisers than rivals have experienced. S&P Global expects social media peer Snap to report 23 per cent revenue growth over the same time period.

This is Musk’s fault. Advertisers are unhappy that his relaxation of moderation has increased the risk of adverts appearing alongside abhorrent content.

Investors, including Musk, could lose their equity. Filing for Chapter 11 bankruptcy would allow the company to reorganise and even raise new funds to support ambitious Super App plans. But creditors would have to agree. They could also take control of the company.

Musk may opt to buy the debt himself. But if banks offload it elsewhere, Twitter may end up in the hands of distressed debt funds. From frying pan to fire in one easy flip.

https://www.ft.com/content/59649af9-2538-4121-af3c-f35b337522c4?ftcamp=traffic/partner/feed_headline/us_yahoo/auddev

basilico:


THey have kept me busy I have not been active here.,
I will send some eggs to Ibime impoverished family.

SlyFoxxProblem:


Bahahah. Look at this moronn. I know exactly who you are. So obsessed with me that you keep opening multiple accounts in my name hahahaha. I am tormenting this imbecilee’s souls

You dare say I’m obsessed with nairaland. This my first time logging in over 48 hours. You are here opening multiple accounts in my name, researching all my old posts, you have like 17 tabs open on your laptop searching my monicker with different words seeing what you can find. I am eating at your soul you can’t even breath, eat or sleep hahahaha. I love it. It gives me so much joy to know I am making some Trump deranged fools life a misery. Hahaha. Now you are also suffering from Slyfoxx derangement syndrome (SDS) hahaha. Oma se o. I pity the woman that went through pains only to birth such a redundancy of a human being like you.

I will keep opening new accounts every time they ban me so I can keep tormenting your soul and there’s nothing you can do about it. You Trump deranged moronns on this thread are plagued with me for life. You can never know peace. I have been sent by a higher power to make your life as miserable as possible heheheh.

You think I’m a faggott. Bring that your dirty worthless sister let’s see if I don’t fvck her till pus oozes out of her rotten vagina. Bastard child like you. Don’t go and look for your real father be obsessing over me online.

Obrigardo:
Anyone following the George Santos story lol
A movie will be made about this scam artist, most certainly. Hollywood won't Miss that chance lol

The republiqan party is in disarray.

benalvino3:


Twitter and Tesla are two different companies. I don't understand how you talk about job cut at Tesla and then job to Twitter.

benalvino3:


I am sure you don't believe it's Biden border crisis too.

saxywale2:
Zelensky got a standing ovation, applause and cheers when he stepped into the US Congress.

https://twitter.com/Acyn/status/1605725827798376452?t=T5_C605PaRms0gR4KQnpDg&s=19

tamudabu:


The border crisis dump wanted to dupe Mexico to build a wall for?

I sure "don't believe it's Biden border crisis too" Ben.

Ibime:


Let me know when rent is due since I'm living in your head

benalvino3:
Basilico, Madam Lake's trial is getting interesting

basilico:


She will not win because she has to prove the intentional mistakes disenfranchised her.

Slyfoxxdafaggot:

I bet those 48 hours were the longest moments in ya worthless life lol. Go on, tell everyone who i am. Please embarrass yourself

As for all the other rubbish you wrote about "tormenting" yadayadayada; more excuses to hide your addicted obsession with NL and being a Trump dicksucker. You talk about fucking people's sister because we know ya get nothing but pity pussy from these ashawos...each one u Bleep have to be sooo high they don't remember they've bleeped a dirty piece of shite like ya
Ya life is a sad one bro. Ashawo threads, sucking Trump's dick, stalking women and sleeping on social media will not change it. Lie all ya want. This social media ting is a big deal to you. It's where ya life starts and ends LOl.

benalvino3:


At this point the trial and 2020 debacle is a clear indication that the elections especially in Ari has serious integrity issues.

benalvino3:


You can't do without trump. You are sick at this point.

People who support trump here is not this obsessed with the guy.

How will you believe its his border? You are a big fan of buhari. You only support anything that destroys.

basilico:


I think that FBI has kompromat on a lot of people in positions of power. FBI has access to all social media activities of everyone on all platforms including gmail, , save now for Twatter that Elon bought out.

"Nice little photos you downloaded, would be a shame if they were leaked".... Or something like that.

SlyFoxxProblem:


It’s a mental illness bro. No longer a joke. never in history of the world has one man completely dominated the minds and hearts of such large swaths of the worlds population.

These people think about him more than their own families and Jesus Christ himself. They borderline worship him without even knowing. To them Every thing that happens in this earth can be traced back to Donald Trump one way or another. They are very sick bro. Stop hating them and instead pity them. Pray for them. Christ teaches us to show compassion for the sick. Especially in this festive period.

benalvino3:


If trump should disappear, tamudabu will make a trump shrine just to stay alive

Slyfoxxdafaggot:

SlyFoxx da gay is his twin. They might even be related LOL.
Both gay, lying psychos

Slyfoxxdafaggot:

SlyFoxx da gay is his twin. They might even be related LOL.
Both gay, lying psychos

Obrigardo:


You know cucker tarlson is producing a Russian propaganda segment right now

Obrigardo:
Anyone following the George Santos story lol
A movie will be made about this scam artist, most certainly. Hollywood won't Miss that chance lol

The republiqan party is in disarray.

benalvino3:
You can't do without trump. You are sick at this point.

People who support trump here is not this obsessed with the guy.

benalvino3:
How will you believe its his border? You are a big fan of buhari. You only support anything that destroys.