Josh wrote: ↑Sat Nov 12, 2022 8:15 am
It’s like you guys have never seen a leveraged buyout before. This just happens to be one the press and the left wing government doesn’t like.
What's not to like? This stuff is comedy gold. We are witnessing in real time the most expensive mid-life crisis in the history of the world. I can't wait for the movie.
A standard leveraged buyout has a large layoff followed by the new owners giving somber statements about how bad losses are and possible bankruptcy. They try to smash the valuation of the company as low as possible.
This makes the debt used for the LBO trade at a discount. The bond holders of Twitter’s LBO are trading at 60¢ right now. Then the new owners will buy out that debt and either own the company outright or refinance the debt.
This has been done many many times. Elon Musk is no fool. He knows how to make a lot of money, using things like complex financing.
Yes, and that sort of thing where acquiring firm finances the deal by larding all the debt onto the firm they are acquiring and then strips it for parts should actually be illegal. Rather than encouraged by our tax laws and lax regulations. That was Mitt Romney's stock in trade with Bain Capital.
Do you think it is a good thing if Musk drives Twitter into the ground and bankrupts it and then walks away leaving others holding the debt? Perhaps they are also culpable by underwriting his debt. But still. Lots of lives and careers will be ruined and for what?
0 x
A fool can throw out more questions than a wise man can answer. -RZehr
What's not to like? This stuff is comedy gold. We are witnessing in real time the most expensive mid-life crisis in the history of the world. I can't wait for the movie.
A standard leveraged buyout has a large layoff followed by the new owners giving somber statements about how bad losses are and possible bankruptcy. They try to smash the valuation of the company as low as possible.
This makes the debt used for the LBO trade at a discount. The bond holders of Twitter’s LBO are trading at 60¢ right now. Then the new owners will buy out that debt and either own the company outright or refinance the debt.
This has been done many many times. Elon Musk is no fool. He knows how to make a lot of money, using things like complex financing.
Yes, and that sort of thing where acquiring firm finances the deal by larding all the debt onto the firm they are acquiring and then strips it for parts should actually be illegal. Rather than encouraged by our tax laws and lax regulations. That was Mitt Romney's stock in trade with Bain Capital.
Do you think it is a good thing if Musk drives Twitter into the ground and bankrupts it and then walks away leaving others holding the debt? Perhaps they are also culpable by underwriting his debt. But still. Lots of lives and careers will be ruined and for what?
I agree that what people like George Soros do should be illegal. However, it isn’t.
You’re just mad that someone is doing this who isn’t a committed liberal Democrat. So are a lot of other people. What is good for the goose is good for the gander…
A standard leveraged buyout has a large layoff followed by the new owners giving somber statements about how bad losses are and possible bankruptcy. They try to smash the valuation of the company as low as possible.
This makes the debt used for the LBO trade at a discount. The bond holders of Twitter’s LBO are trading at 60¢ right now. Then the new owners will buy out that debt and either own the company outright or refinance the debt.
This has been done many many times. Elon Musk is no fool. He knows how to make a lot of money, using things like complex financing.
Yes, and that sort of thing where acquiring firm finances the deal by larding all the debt onto the firm they are acquiring and then strips it for parts should actually be illegal. Rather than encouraged by our tax laws and lax regulations. That was Mitt Romney's stock in trade with Bain Capital.
Do you think it is a good thing if Musk drives Twitter into the ground and bankrupts it and then walks away leaving others holding the debt? Perhaps they are also culpable by underwriting his debt. But still. Lots of lives and careers will be ruined and for what?
I agree that what people like George Soros do should be illegal. However, it isn’t.
You’re just mad that someone is doing this who isn’t a committed liberal Democrat. So are a lot of other people. What is good for the goose is good for the gander…
I'm not sure why you think I'm mad about Twitter and Elon Musk. It's amusing in a rubbernecking train wreck sort of way. Just like the collapse of bitcoin. But that is about it. If Elon wants to drive twitter into the ground that is his business. If that happens, some other deep-pocketed tech company will quickly come up with a replacement.
I am much more concerned about other abusive leverage buyouts like the proposed merger of Kroger and Albertsons that does have the potential to affect real people's lives. and reduce competition in the grocery sector.
0 x
A fool can throw out more questions than a wise man can answer. -RZehr
He shouldn't be conducting affairs. I don't think one has to be a self made billionaire to tell him that, though he might be more likely to listen if you were.
ohio jones wrote: ↑Mon Nov 14, 2022 11:41 am
He shouldn't be conducting affairs. I don't think one has to be a self made billionaire to tell him that, though he might be more likely to listen if you were.
How it's going. Apparently Elon is very hard at work making Twitter into a platform for free speech by firing everyone who dares question or criticize him and burn the company to the ground. Today was Elon's deadline for employees to either leave or stay and "become extremely hard-core."
Hours before a Thursday deadline that Elon Musk had given Twitter employees to decide whether to stay or leave their jobs, the social media company appeared to be in disarray.
Mr. Musk and his advisers held meetings with some Twitter workers whom they deemed “critical” to stop them from leaving, four people with knowledge of the conversations said. He sent out confusing messages about the company’s remote work policy, appearing to soften his stance on not allowing people to work from home before warning their managers, according to those people and internal emails viewed by The New York Times.
All the while, two people said, resignations started to roll in. By the deadline, 5 p.m. Eastern time, hundreds of Twitter employees appeared to have decided to depart with three months of severance pay, the people said.
Their exits added to the turmoil at Twitter since Mr. Musk, 51, completed his $44 billion takeover last month. The billionaire has laid off half of Twitter’s 7,500 full-time workers, fired dissenters and told employees that they need to be “extremely hard core” to make the company a success.
Ok...sounds like Elon knows exactly what he's doing.
And then there's this gem
and
and...
0 x
A fool can throw out more questions than a wise man can answer. -RZehr
Robert wrote: ↑Fri Nov 18, 2022 9:12 am
I would not trust all those posts. People do lie when they are mad.
I have been using Twitter of late and am seeing no problems from my end.
Definitely.
Ironically, ^^they’re using Twitter .. [$8]
“He who laughs last laughs best” - The proverbial ink isn’t dry on any of this. Try checking this time next year.
Ken,
recall when you were convinced Musk would not buy Twitter at all?
your charming boyish eagerness reflects your infinitely fascinating personal wishes, not so much what’s real.
Robert wrote: ↑Fri Nov 18, 2022 9:12 am
I would not trust all those posts. People do lie when they are mad.
I have been using Twitter of late and am seeing no problems from my end.
Definitely.
Ironically, ^^they’re using Twitter .. [$8]
“He who laughs last laughs best” - The proverbial ink isn’t dry on any of this. Try checking this time next year.
Ken,
recall when you were convinced Musk would not buy Twitter at all?
your charming boyish eagerness reflects your infinitely fascinating personal wishes, not so much what’s real.
You have a faulty recollection. I was convinced of nothing. What I actually wrote was:
I actually have my doubts about whether Elon is actually going to go through with his purchase of Twitter. I've seen some good arguments suggesting he is likely to have second thoughts and back out.
And of course I was completely right. He did have second thoughts and try to back out. Then of course Twitter sued him and forced the deal to go through and the court was poised to enforce the purchase agreement and not let him off the hook. The original Twitter shareholders are probably laughing all the way to the bank right now.
0 x
A fool can throw out more questions than a wise man can answer. -RZehr
