Elon Musk’s purchase of Twitter would leave banks $13 billion in debt

One of the business movements of the year, the purchase of Twitter by Elon Muskwould leave the banks participating in the operation with a debt of about 13,000 million dollars.

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But also, the banks would not be thinking of selling that debt immediatelybut they would keep it until the economic situation improves and they can sell it at a higher price, which would make it the largest “hung” purchase in history, according to The Wall Street Journal.

According to the media specialized in economic news, the banks that help finance the purchase, among which are Morgan Stanley, Bank of America or Barclays, they think to ‘hang’ (ie wait) the sale of the remaining debt to avoid losses.

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The media recalls that at the beginning of the year Banks agreed to finance Tesla founder before finding investors who were willing to participate in the acquisition of Twitter, but the increase in interest rates and the announcement of an impending recession added difficulties to the business.

In any case, sources close to this purchase told the Wall Street Journal that the banks expect sell part of the debt contracted at the beginning of 2023, if the agreement is finalized and market prices improve.

GDA / Weather / Colombia

Source: Elcomercio

James

I have worked as a journalist for over 10 years and have written for various news outlets. I currently work as an author at 24 News Recorder, mostly covering entertainment news. I have a keen interest in the industry and enjoy writing about the latest news and gossip. I am also a member of the National Association of Journalists.