Jakarta –
Elon Musk buy Twitter does not necessarily come from his own pocket. He used bank loans, margin loans related to Tesla shares, and the rest with his own money.
Quote from ReutersFriday (29/4/2022), Elon Musk convinced a number of banks that they could pay off the debt by making savings and developing features.
The savings in question are cuts in the salaries of Twitter directors. Then feature developers, namely making money from tweets. This information was said by three sources who did not want to be named.
According to the source, Twitter’s board of directors’ cost-cutting is definitely what Musk will pursue. According to the Tesla boss’s tweet, Twitter’s board of directors salary cuts could result in cost savings of around $3 million.
The savings are outlined Elon Musk to the bank when convincing to ask for a loan. One of them he pointed to Twitter’s gross margin, which is much lower than Facebook’s and Pinterest’s Meta Platform Inc (FB.O) (PINS.N). For this reason, it is possible to run the company in a more cost-effective way.
Then, the second way is to pay off debts to banks by developing features to increase business income. That includes making money from tweets that contain important information or go viral.
Total value Elon Musk bought Twitter for US$ 44 billion or equivalent to Rp. 629.2 trillion (exchange rate of Rp. 14,300). He secured a $13 billion bank loan secured by Twitter, a second $12.5 billion margin loan linked to Tesla stock, and the remaining payments with his own money.
(ara/ara)
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