The moment he came up with the idea for the app and decided to tweet it, basically.
View attachment 18220
And now Musk’s backers don’t want to back him anymore to buy Twitter. So the whole thing could be off again by the end of the day, and Twitter’s lawsuit will continue, leaving Elon very poor. I’m good with that.
Yep. So much has been revealed about the flighty approach Musk took even coming up to "deciding" to make an offer.. and then all his "maybe-maybeNot" process, and meanwhile the Fed has jacked up rates like three times, and the seven big banks who wanted in on it are like uh, uh.... and some hedge funds already stopped talking with Musk.
Elon Musk’s takeover of Twitter would be paid for in part with $13 billion of debt seven banks including Morgan Stanley and Barclays agreed to provide. They could now face $500 million in losses if they tried to unload all the debt.
www.wsj.com
The banks that signed up to provide a ton of the financing are still flush with all those capital reserves the post recession regulations made them stack up. But that doesn't mean they signed up meaning to lose money. They meant to unload the debt, not hold it, but the market for that is bad now: they would lose hundreds of millions if they had to sell it, and it's still unclear what Musk even means to do with the platform.
It's not simple to develop the equivalent of an "everything" app like China has in WeChat, off a platform like Twitter with a much smaller base and only a social media aspect at present. Also, some of the other financing for the Twitter deal involves a few billion in unsecured bonds, and the appetite for those is fading fast in the current environment.
This thing could still land in court and the judge seems to realize that. And you know there's still Musk having to sell down Tesla to make the bulk of the financing, what does that say about prospects for his having to unload other stuff. Markets down on other issues too. This guy, gee, would you even want to be in any part of his org chart?!