Isn't this the same Twitter company that was supposed to go bankrupt a few years ago? Now it is somehow part of a Space company that has an AI division inside of it?

I think we are going to be waiting a long time for Twitter / X to go bankrupt as it was (erroneously) predicted a long time ago.

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vessenes 4 hours ago | parent | next [-]

Twitter was supposed to go bankrupt if you only read news articles from journalists about it. If you looked at Musk's operating track record, you might have had a different opinion.

In the transaction announcement (xAI buying twitter) twitter reported $12b in debt on acquisition, roughly the amount originally sourced ($13b), so it apparently made good on its debt covenants during the operating period. I have no idea if it received additional capitalization from Musk to do that or not.

That said, the deal was classic Musk - anybody who went on the equity ride with him in Twitter just KILLLED it; xAI was valued at $80bn and twitter at $33bn, so the owners there became 30% owners of xAI. xAI was acquired for $250bn at a SpaceX valuation of $1 trillion, or 20% of the resulting entity, so the twitter stock was 6% of spaceX at about $2 trillion, or $120bn on an equity purchase price basis of $30bn. and that $120bn in value is on really good daily trading volumes; lots of depth.

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wmf 4 hours ago | parent | prev | next [-]

That was the point of the bailout. Twitter is already a rounding error so no one will notice if it goes to zero.

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DoesntMatter22 4 hours ago | parent [-]

Don't think it was going to zero anyway. They only had to worry about servicing their debt, they were doing well other than that. And even then they were probably fine.

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munk-a 4 hours ago | parent [-]

I am not certain what financials you were looking at but Twitter was unable to ever meet the debt servicing costs for the leveraged buyout alone. It also had overhead costs and other debts that were entirely out of scope for being covered.

	▲	DoesntMatter22 3 hours ago \| parent [-]
		The latest Bloomberg reports before the xai merger/acquisition showed a dramatic turn around in their financial situation. In the beginning it wasn’t good but they would have been fine after that. There are no credible reports to the contrary

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efficax 4 hours ago | parent | prev | next [-]

twitter was "acquired" by xAI which was then "acquired" by SpaceX as part of the IPO strategy, (and part of a strategy of giving the investors on the hook for the twitter acquisition a return). Who knows how it performs, but yeah, now that it's the social media arm of the SpaceX conglomerate, it will likely be around for a long time, especially since it serves the basic function of stroking Musk's ego.

	▲	munk-a 4 hours ago \| parent [-]
		It is right and proper to view twitter as a loss leader propaganda arm.

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ryandvm 4 hours ago | parent | prev | next [-]

None of them go bankrupt. The whole thing will just get stuffed into a larger Matryoshka egg that IPOs for eleventy trillion dollars in 10 years.

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svachalek 4 hours ago | parent | prev [-]

I'd say the prediction is correct, as the acquisition is more or less just a better way to capitalize on the bankruptcy.