• TWeaK@lemm.ee
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    1 year ago

    In the same way that Twitter was never actually worth the $44 billion that Elon Musk paid

    Musk paid $26bn. $5bn was from outside inverstors. The remaining $13bn is a loan that Twitter took out to buy itself on Musk’s behalf. This $13bn was essentially a death sentence (like most leveraged buyouts are - see: Toys R Us) as Twitter could barely afford to pay the interest on that loan, even before Musk ruined its income.

    Musk paid $26bn to kill Twitter. Most of that $26bn was underwritten by stocks in Tesla (not SpaceX) which have since plummeted in value.

    Now, after a few friendly chats between Steve Huffman and Musk, they are killing reddit, too.