Wall Street banks face steep losses financing Elon Musk's Twitter deal, but they stand to make a killing in the long run
"No one has asked for a postponement of the October 17th trial date, and I think that's a function of Twitter wanting to keep a judge involved and make sure Musk goes forward with his offer," explained Robert Heim, partner at law firm Tarter Krinsky & Drogin."There's a high level of distrust on both sides, and Twitter's lawyers are understandably concerned whether this could be a ploy and some sort of legal maneuver.
. That leaves Musk's advisors, Morgan Stanley and Bank of America, with $59 million, which is nothing to scoff at. Backing out of the deal would burn bridges, Biggar added. Further, banks might be able to mitigate their losses if they wait to unload the debt until the market improves. Plus, banks knew going in that this was a potentially risky proposition, which is why some banks said no to acting as financiers,But banks could nonetheless be interested in other parts of Musk's sprawling network of business interests.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk’s Revived Twitter Deal Could Saddle Banks With Big LossesElon 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.
Read more »
Elon Musk set to purchase Twitter after reversing courseMusk's deal to acquire Twitter would move forward at a total cost of roughly $44 billion.
Read more »
For Elon Musk, buying Twitter would be the easy part -- analysts say the real mess lies aheadFixing Twitter with monetization and subscriber engagement, “a Rubik’s Cube problem,” will be a big challenge, Wedbush analyst Daniel Ives said after Elon Musk proposed to move forward with the acquisition on its original terms at $54.20 per share.
Read more »
Musk says he wants Twitter again and will pay $44B priceElon Musk wants Twitter again — and Twitter is game
Read more »
Musk says he wants Twitter again and will pay $44B priceElon Musk wants Twitter again — and Twitter is game. The billionaire Tesla CEO has proposed to buy the company at the originally agreed-on price of $44 billion, bringing the tumultuous, monthslong saga another step closer to a conclusion.
Read more »