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Elon Musk Considering Selling $3B Worth New Twitter Shares To Pay Off Debt? Here's His One-Word Reply

Benzinga logo Benzinga 1/26/2023 Shanthi Rexaline
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Tesla CEO Elon Musk opted to finance his Twitter buy with a combination of equity and debt financing, with $13 billion of the $44 billion coming in the form of debt.

What Happened: As Twitter struggles to turn things around and generate cash flow amid a tough macroeconomic condition, servicing of the debt could be a tall order for the Musk-led social media platform.

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A recent report in The Wall Street Journal suggested that the billionaire’s representatives discussed selling up to $3 billion worth of new Twitter shares to retire the high-interest portion of the debt package.

Musk, however, has refuted the report. When one of his followers shared the news on Twitter, tagging him, he had a one-word answer for it.

“No” Musk said.

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Why It’s Important: A scoop shared by Platformer’s Zoe Schiffer earlier this month said Twitter’s revenue fell 40% year-over-year.

A separate report by Information said the platform’s fourth-quarter revenue fell 35% year-over-year due to a slump in advertising income. Ad revenue made up 91.5% of Twitter’s total revenue in the second quarter — the quarter for which the company last publicly disclosed financial results.

Overall ad spending by Twitter’s top 30 advertisers fell by 42% to $53.8 million in November and December combined, Reuters reported, citing data from Pathmatics.

Musk completed the Twitter takeover in late October.

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