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Musk's $44B Twitter now valued at just $9.4B as X

14 pointsby arromatic8 months ago

2 comments

JumpCrisscross8 months ago
Enterprise value != equity value. This is finance 101 and a bit ridiculous for the deputy editor of <i>The Verge</i> to be fucking up.<p>According to Fidelity, X’s equity is worth ~$10bn. X also has $13bn of debt on which $2bn of losses have been reserved [1]. That implies an enterprise value around $20bn.<p>That Fidelity gives its X stake a positive value implies it doesn’t believe Twitter will have to play by the standard rulebook when it defaults.<p>[1] <a href="https:&#x2F;&#x2F;www.businessinsider.com&#x2F;elon-musks-lenders-expect-to-lose-2-billion-on-twitter-debt-report-2023-10" rel="nofollow">https:&#x2F;&#x2F;www.businessinsider.com&#x2F;elon-musks-lenders-expect-to...</a>
arromatic8 months ago
1. Is creating a proper twitter alternative that difficult ? What is google , msft and maybe companies in entire eu (and us) doing ? 2. Is there a chance twitter will be sold ? or a get a government bail out . Twitter&#x27;s reach is too valuable to let it go bankrupt&#x2F; crash .
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