As stated in the Wall Street Journal, major banks are trying to lessen their exposure to the huge $13 billion debt package that enabled Elon Musk’s acquisition of X (formerly Twitter). Since its acquisition by Musk, the platform’s financial viability has been under a microscope and has once again raised concerns felt by a leaked internal email confirmed by The Verge.
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According to this email, Musk acknowledged that X feeds into national conversations but painted a somewhat terrifying financial picture. He listed problems such as stagnant user growth, low revenue, and barely breaking even. While he previously stated that X would be cash-flow positive in a couple of months, the company is still faced with heavy debt obligations, which include over $1 billion yearly in interest payments owed to the acquisition loans.
Musk has introduced job listings and a separate video section, but his grand plan to make X a full-fledged financial services platform by the end of 2024 has largely gone unfulfilled. Instead, it has become a testing ground for Musk’s AI projects, far from his statement of managing “someone’s entire financial life.”