Technology
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
Ask in DM before posting product reviews or ads. All such posts otherwise are subject to removal.
Rules:
1: All Lemmy rules apply
2: Do not post low effort posts
3: NEVER post naziped*gore stuff
4: Always post article URLs or their archived version URLs as sources, NOT screenshots. Help the blind users.
5: personal rants of Big Tech CEOs like Elon Musk are unwelcome (does not include posts about their companies affecting wide range of people)
6: no advertisement posts unless verified as legitimate and non-exploitative/non-consumerist
7: crypto related posts, unless essential, are disallowed
view the rest of the comments
How would that happen?
It can't afford its debt. It's almost guaranteed to happen.
I read about where the money came from and I'm not saying I really understand it, but it seems solid enough for it to never fail unless musk wants it to fail.
Which is, like,..if somebody wants to destroy twitter as fast as possible, but make it look like it's not intentional, what would they do differently than what is happening right now? :) Jk, musk is just an incompetent bag of shit.
It was always going to fail. At that point, Twitter as a company only recently started actually making a profit. What Musk did is called a leveraged buy-out where someone takes out a loan to buy a company. The company that is bought out is then responsible for paying that loan. Remember when I said they just barely had started making money? Well, now they have so much debt that they not only have to make enough money to cover their previous expenses, but also cover the payments for this new loan, and the new loan has interest that creates additional debt of $1 billion a year. How is a company that struggles to make money suddenly going to come up with an extra $1 billion a year? Charging for checkmarks? There aren't enough users... That's why he is so desperate. He knows that by making that joke offer, he royally screwed himself when Twitter called his bluff and forced him to buy. I think he just wanted an excuse to sell some Tesla stock that he knew was overvalued but had said he wouldn't sell.
I don't know, as far as I understand it, all the money sources are covered quite well, he can literally do whatever and there won't be much consequences.
The money used to come from advertisers. Elon has been trying to move it to a subscription model, but few people want to subscribe to a place only right wingers want to be.
Elon wanted Xitter to be a bastion of right wing speech. He just didn't think about what that would entail.