Big banks fronted $13 billion in financing when Musk bought Twitter in October 2022 for $44 billion. But those loans lost value as X struggled, and the banks weren’t able to get them off their books without taking significant losses.
Solution? Morgan Stanley (MS) and Bank of America (BAC) are among the banks that plan to sound out investors in the coming days to buy portions of debt initially provided to Musk in 2022 to take over the social media platform now known as X, according to people familiar with the matter.
Bloomberg separately reported that the offer from the banks is coming with the added incentive of a claim on X’s interest in Musk’s AI startup xAI Corp.
The valuation of X, formerly known as Twitter, is being boosted by a previously undisclosed stake of about $6 billion in xAI Corp., Musk’s AI startup, according to people with knowledge of the matter.
Hmmm invest in X and get a piece of xAI before Musk goes completely off the rails and hope you get your money back before he is sitting out in the Nevada Desert, in a tent, getting his hair cut. Decisions, decisions.
“Liar’s Poker” by Michael Lewis taught me everything I need to know about big bank debt offerings. And that 1 single thing is avoid them at all costs, lol. Amazing that they can dream up pathetic products, offer them to their customers, and stay in business.
Off to the ski trails, my way of coping with the Trump years.
If you lived in metro Detroit, you would need roller skates. The last few years, snowfall here has been pathetic. I blame my neighbor, who now winters in Florida, for taking the bad weather with him.
But is what xAI is working on cost competitive? I remember a comment by a USian manufacturing executive, touring a Japanese auto plant. Looking at an engine line in a Toyota plant, where the engine needed to be turned, at one point on the conveyor, he said his company would build an elaborate, automated, system, to turn the engine. The Toyota line had a stationary post, that would catch a spot on the engine, and turn the engine as it went by.
I’m in nw lower mi. We got about 9-12 inches of snow in the last 24 hours. Actually too much snow for skate skiing, it was really soft and slow, no fun at all, lol. Went back and grabbed my classic ski’s and enjoyed that a heck of a lot more. But should be great skate skiing tomorrow, if they pack that fresh snow down.
Same here, I actually luv winter, am outside almost as much in winter as in summer. I trail run in the summer and fall, and it grinds me down, do not get that beat down feeling with xc skiing. I can ski 15 miles or so and be less sore than running the same trails for 5 miles or so. Xc skiing is an awesome way to get thru the woods !
Typical lake effect. Big, fluffy flakes, drifting down, hour, after hour, after hour. vs the “Alberta Clipper” type of horizontal snow, driven by sub-zero 50mph wind. These are the conditions that solar farm is supposed to be built in, near Gaylord.
I don’t know how much snow they get in Scotland or northern Germany. The west side of Michigan gets lots, due to proximity to Lake Michigan. I can sit here in metro Detroit, without a flake on the ground, and watch the weather radar showing all day snow in the lake effect belt.
