![[Newsstand] Elon Musk and magical thinking](https://i.headtopics.com/images/2022/11/25/rapplerdotcom/newsstand-elon-musk-and-magical-thinking-newsstand-elon-musk-and-magical-thinking-1595977573485486080.webp)
'One of many lessons from the ongoing Twitter fiasco: Billionaires make up, and bankers believe, all kinds of bullshit.' Opinion ThoughtLeaders
To buy Twitter, Elon Musk had to pay not only the $44-billion acquisition price but also what are called closing costs. The total amount was substantially higher: $46.5 billion. A consortium of major banks, including Morgan Stanley, Barclays, and Bank of America, provided Musk with almost $13 billion in debt financing. In other words, aside from putting up his own money and convincing investment funds to take a stake, Musk had to take out a loan.
For ordinary people like you and me, these sums are unreal. Is there any difference between $1 billion and $13 billion, or $44 billion, for the proverbial man or woman on the street? But we presume that bankers appreciate the true weight of money.
And yet one of the first things Musk did when he took over Twitter was to fire half of the staff. Over 1,200 moreafter he set a deadline. How can Musk possibly make good on his other grandiose plans for Twitter? He has less than a third of the work force he said needed to be in place by this year. These numbers are literally incredible: hard to believe, or even credit. This is the business bullshit that the bankers bought? This is the BS that magical thinking sold. Never mind the Qatari or Saudi investors, who may only need to answer to their sovereigns, but what about the suits in Morgan Stanley, who agreed to loan Musk about $3.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Twitter DMs Will Have Encryption And Enable Video ChatDo you want to keep your direct messages on Twitter private? Elon Musk said the creator of the instant messaging app Signal would provide encryption for Twitter DMs. The new CEO expressed this
Read more »
Musk announces 'amnesty' for banned Twitter accounts after pollElon Musk tweeted Thursday that "amnesty" for previously suspended Twitter accounts would begin "next week," after the majority of respondents on a 24-hour poll he had posted voted in favor of the move.
Read more »
Musk announces 'amnesty' for banned Twitter accounts after pollElon Musk said Thursday many previously suspended Twitter accounts would be allowed back on the platform after a landslide of users responding to an informal poll by the new owner voted in favor of the move.
Read more »
Twitter job cuts a concern as new EU rules kick in, EU justice head saysEU justice chief Didier Reynders expresses concern on whether Twitter will still be able to comply with the bloc's new rules against illegal online content.
Read more »
Volkswagen says all brands have halted paid activities on TwitterAudi, VW, Seat, Cupra, Lamborghini, Bentley, Ducati, and Porsche have all followed parent company Volkswagen's advice.
Read more »
Musk sets Twitter poll for 'general amnesty' of suspended accountsNew owner Elon Musk on Wednesday polled Twitter users on whether the site should offer a general amnesty to suspended accounts, using the same method he used to handle the case of Donald Trump.
Read more »