Really interesting article on the financial pickle Musk has gotten into
Quote:
Last year, Twitter’s interest expense was about $50 million. With the new debt taken on in the deal, that will now balloon to about $1 billion a year. Yet the company’s operations last year generated about $630 million in cash flow to meet its financial obligations.
That means that Twitter is generating less money per year than what it owes its lenders. The company also does not appear to have a lot of extra cash on hand. While it had about $6 billion in cash before Mr. Musk’s buyout, a large portion of that probably went into the cost of closing the acquisition.
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https://www.nytimes.com/2022/10/30/t...tter-debt.html
No wonder he wants to layoff everyone and wants a subscription service. He’ll probably start charging per tweet next