Priyanka Tiwari
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Elon Musk’s X is set to repurchase the last $1.2 billion of second-lien debt tied to its 2022 $44 billion buyout of Twitter, according to sources familiar with the matter. This move will relieve Wall Street banks that have been holding onto the risky loans since the acquisition.
Funding the Debt Buyback
The debt repurchase may be funded in part by X’s recent equity raise, though final decisions have not been confirmed. The seven banks, led by Morgan Stanley, will finally be able to remove this debt from their balance sheets, marking the end of their financial exposure to Musk’s high-stakes takeover.
A spokesperson for X declined to comment, while Morgan Stanley has not provided a statement.
Musk’s Strategic Moves in 2024
Earlier this year, banks managed to offload most of the $13 billion in loans linked to the acquisition. Several factors have influenced investor sentiment, including:
- Musk’s relationship with former President Donald Trump
- X’s improving financial performance
- The company’s stake in AI firm xAI
These factors have bolstered confidence in X, helping Musk navigate the financial challenges of the Twitter buyout.
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