▲ 617 ▼ Twitter Faces $500 Million Lawsuit for Allegedly Not Paying Employee Severance (gizmodo.com) submitted 3 years ago by mastermind@lemm.ee to c/technology@lemmy.world 37 comments fedilink hide all child comments
[–] errer@lemmy.world 15 points 3 years ago (1 child) $500m to Elon is like $500 to the average American permalink fedilink source hideshow 2 child comments replies: [–] flipht@kbin.social 37 points 3 years ago (2 children) Not so much at the moment. He borrowed 44 bn to buy Twitter and has a 1.5 bn payment coming up. He is of course more liquid than any of us, but the fact that he keeps not paying various bills seems to indicate that he's having cash flow problems and is having to scrounge for his loan payment. This is just one of many multi million dollar payments that musk and/or Twitter are fighting. permalink fedilink source parent hideshow 4 child comments replies: [–] markr@lemmy.world 28 points 3 years ago (2 children) Eh. He can sell his tesla stock anytime he wants cash, he just would have to pay taxes on it and instead would likely borrow against it. Oh the sad pitiful life of our beleaguered oligarchs. permalink fedilink source parent hideshow 4 child comments replies: [–] gravitas_deficiency@sh.itjust.works 13 points 3 years ago That, and selling $1.5B of Tesla stock would tank the stock price. Especially if he does it every single time he has to make a payment. permalink fedilink source parent [+] ruck_feddit@lemmy.ml -6 points 3 years ago (1 child) At least in Russia you have to be Russian or a closely affiliated state to attain that level of influence permalink fedilink source parent hideshow 2 child comments replies: [–] markr@lemmy.world 7 points 3 years ago Plus you get defenestrated if you piss off the government. permalink fedilink source parent [–] SeaOtter@lemmy.ca 15 points 3 years ago* (last edited 3 years ago) He did not borrow 44 billion to buy Twitter. He put about ~13 billion dollars of debt on Twitter itself, so he had to come up with about 31 billion in equity. He was able to secure third party equity commitments of around 7 billion (Larry Ellison, the Saudis, etc.). He also held a minority interest of about 4 billion in Twitter. He funded the remaining 20 odd billion with a combination of cash (from cash holdings and selling Tesla shares in early 2022) and equity margin loans on his remaining Tesla shares. It is understood that he likely paid off most of his margin loans as he continued to sell further Tesla shares in late 2022. The 1.5 billion interest expense you mention is just for the bank debt (that the banks still hold, and have been unable to sell), and is Twitter’s responsibility, not Elon’s. This is a long way of saying that I think the banks will own Twitter within 6-12 months. They will not roll over like landlords, and its far more clear cut for a missed loan payment. permalink fedilink source parent
[–] flipht@kbin.social 37 points 3 years ago (2 children) Not so much at the moment. He borrowed 44 bn to buy Twitter and has a 1.5 bn payment coming up. He is of course more liquid than any of us, but the fact that he keeps not paying various bills seems to indicate that he's having cash flow problems and is having to scrounge for his loan payment. This is just one of many multi million dollar payments that musk and/or Twitter are fighting. permalink fedilink source parent hideshow 4 child comments replies: [–] markr@lemmy.world 28 points 3 years ago (2 children) Eh. He can sell his tesla stock anytime he wants cash, he just would have to pay taxes on it and instead would likely borrow against it. Oh the sad pitiful life of our beleaguered oligarchs. permalink fedilink source parent hideshow 4 child comments replies: [–] gravitas_deficiency@sh.itjust.works 13 points 3 years ago That, and selling $1.5B of Tesla stock would tank the stock price. Especially if he does it every single time he has to make a payment. permalink fedilink source parent [+] ruck_feddit@lemmy.ml -6 points 3 years ago (1 child) At least in Russia you have to be Russian or a closely affiliated state to attain that level of influence permalink fedilink source parent hideshow 2 child comments replies: [–] markr@lemmy.world 7 points 3 years ago Plus you get defenestrated if you piss off the government. permalink fedilink source parent [–] SeaOtter@lemmy.ca 15 points 3 years ago* (last edited 3 years ago) He did not borrow 44 billion to buy Twitter. He put about ~13 billion dollars of debt on Twitter itself, so he had to come up with about 31 billion in equity. He was able to secure third party equity commitments of around 7 billion (Larry Ellison, the Saudis, etc.). He also held a minority interest of about 4 billion in Twitter. He funded the remaining 20 odd billion with a combination of cash (from cash holdings and selling Tesla shares in early 2022) and equity margin loans on his remaining Tesla shares. It is understood that he likely paid off most of his margin loans as he continued to sell further Tesla shares in late 2022. The 1.5 billion interest expense you mention is just for the bank debt (that the banks still hold, and have been unable to sell), and is Twitter’s responsibility, not Elon’s. This is a long way of saying that I think the banks will own Twitter within 6-12 months. They will not roll over like landlords, and its far more clear cut for a missed loan payment. permalink fedilink source parent
[–] markr@lemmy.world 28 points 3 years ago (2 children) Eh. He can sell his tesla stock anytime he wants cash, he just would have to pay taxes on it and instead would likely borrow against it. Oh the sad pitiful life of our beleaguered oligarchs. permalink fedilink source parent hideshow 4 child comments replies: [–] gravitas_deficiency@sh.itjust.works 13 points 3 years ago That, and selling $1.5B of Tesla stock would tank the stock price. Especially if he does it every single time he has to make a payment. permalink fedilink source parent [+] ruck_feddit@lemmy.ml -6 points 3 years ago (1 child) At least in Russia you have to be Russian or a closely affiliated state to attain that level of influence permalink fedilink source parent hideshow 2 child comments replies: [–] markr@lemmy.world 7 points 3 years ago Plus you get defenestrated if you piss off the government. permalink fedilink source parent
[–] gravitas_deficiency@sh.itjust.works 13 points 3 years ago That, and selling $1.5B of Tesla stock would tank the stock price. Especially if he does it every single time he has to make a payment. permalink fedilink source parent
[+] ruck_feddit@lemmy.ml -6 points 3 years ago (1 child) At least in Russia you have to be Russian or a closely affiliated state to attain that level of influence permalink fedilink source parent hideshow 2 child comments replies: [–] markr@lemmy.world 7 points 3 years ago Plus you get defenestrated if you piss off the government. permalink fedilink source parent
[–] markr@lemmy.world 7 points 3 years ago Plus you get defenestrated if you piss off the government. permalink fedilink source parent
[–] SeaOtter@lemmy.ca 15 points 3 years ago* (last edited 3 years ago) He did not borrow 44 billion to buy Twitter. He put about ~13 billion dollars of debt on Twitter itself, so he had to come up with about 31 billion in equity. He was able to secure third party equity commitments of around 7 billion (Larry Ellison, the Saudis, etc.). He also held a minority interest of about 4 billion in Twitter. He funded the remaining 20 odd billion with a combination of cash (from cash holdings and selling Tesla shares in early 2022) and equity margin loans on his remaining Tesla shares. It is understood that he likely paid off most of his margin loans as he continued to sell further Tesla shares in late 2022. The 1.5 billion interest expense you mention is just for the bank debt (that the banks still hold, and have been unable to sell), and is Twitter’s responsibility, not Elon’s. This is a long way of saying that I think the banks will own Twitter within 6-12 months. They will not roll over like landlords, and its far more clear cut for a missed loan payment. permalink fedilink source parent