Tag Archives: thin skinned

The financials don’t work…

Well…I promise you this will be the last one about twitter and ole Elon today but it deals with just another one of the confusing details about why he is buying twitter in the first place….and this one will be short so no TLDR….when you look at the details of the deal, it looks like Elon will be borrowing around 25 billion dollars to make the deal and at 4-5% interest on the loan, that is about 1.5 billion dollars in interest alone…and the funny thing is that even in it’s best year, twitter has never made that much money…maybe a billion dollars or so and that means that Elon is going to have to squeeze a half a billion dollars of cost out of the organization to make it work…and isn’t that always the way? Venture capital or billionaires swoop in and the first thing they do is fire everyone who is making any money so they can pump the stock and then dump it…with twitter going private, that won’t be the case here with the stock but there still needs to be a half billion dollars in costs taken out since analysts agree that there is not enough potential revenue growth to support the half billion in extra profit. So why? Could it be as simple as a thin skinned billionaire getting pissed that people on twitter don’t kiss his ass as much as he thinks they should? That would be a laugh and right now it is as good an explanation as any other…geez…