As part of Elon Musk’s acquisition, Twitter reportedly took on nearly $13 billion in loans. Wow!
Twitter has made its first interest payment on its $12.5+ billion in debt. Elon Musk took out billions in loans back in October 2022, as part of the successful purchase of Twitter, plus take the social media platform private. Via its $44 billion acquisition deal, the close to $13 billion in loan debt became Twitter’s responsibility.
The initial interest payment, likely cost the company around $300 million, according to Bloomberg. Twitter reportedly paid that amount to seven banks, led by Morgan Stanley, which initially provided the acquisition funds.
Making its first interest payment on time is a great sign. Twitter will have to pay about $1 billion towards its debt every year in order to keep up with it. Annual interest alone could exceed $1.2 billion, Bloomberg reported.
In apparent attempts to grapple with these financial problems, the company hasn’t paid rent at at least three of its offices, including its San Francisco headquarters, for months. The company also laid off more than half of its employees over the past three months.
In a Twitter Spaces presentation back in December, Elon Musk said that the company was on track to “roughly” break even.