Elon Musk, CEO of Tesla. /Reuters Yonhap News
With the financial investment company Fidelity recently assessing that the corporate value of
On the 2nd (local time), the US ABC reported, “Due to continued losses, the sale of X is becoming an attractive (economically) option for Musk.” X, which has gone through a large-scale restructuring, name change, and service reorganization over the past year, as well as a loss of advertisers due to the controversy over Musk’s anti-Semitism, is currently showing no signs of business recovery.
However, ABC reported that experts’ opinions are divided about the possibility of Musk’s sale of X. On one side, there is an opinion that if X is sold in a greatly damaged state, the arrogant Musk will be admitting his defeat, so the sale attempt will not be made. Anne Lipton, a professor at Tulane University who specializes in corporate law, told ABC, “Musk is not acting as an economic actor,” and Paul Barrett, a professor at New York University Law School, also said, “Selling “It will be too big a blow to Musk.”
On the other hand, some experts analyzed that since there is no way to expand platform capabilities other than selling shares to raise funds, Musk may go ahead with a partial sale even if it means destroying his pride. Dan Ives, managing director of investment firm Wedbush, said, “(Musk) will try to raise external capital.” To purchase X, Musk borrowed $12.5 billion from Bank of America, Morgan Stanley, etc., and is paying hundreds of millions of dollars in interest on that debt. If X’s profits decline further while the debt burden continues, the sale of shares may accelerate.
2024-01-02 23:08:48
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