Wall Street banks are hopeful they can soon sell off $13 billion of debt tied to Elon Musk's social media platform X. They now believe that Musk's close relationship with President-Elect Donald Trump could improve X's prospects, allowing them to sell the debt without large losses.
Elon Musk’s growing political influence has made some Wall Street banks hopeful they can soon sell off $13 billion of debt tied to his purchase of the social media platform X (formerly Twitter), according to three banking sources.
The debt was used to help Musk buy X for $44 billion in 2022, but banks such as Morgan Stanley and Bank of America have struggled to sell it. They now believe that Musk's close relationship with Republican President-elect Donald Trump could improve X’s prospects, allowing them to sell the debt without large losses.
Banks typically sell loans to investors soon after a deal, but major changes Musk made to X—such as mass layoffs and reduced content moderation—drove away advertisers, cutting revenue and increasing the risk of default.
Recently, however, some banks have noticed more users returning to X during events such as the U.S. elections. Trump, whose account was reinstated by Musk after being banned in 2021, has been active on the platform. The banks hope this increased user activity, along with a strong U.S. economy, might boost revenue.
Analysts also believe Musk's ties to Trump, who appointed him to lead a new department on government efficiency, could benefit Musk’s other ventures, like Tesla and SpaceX. Notably, Tesla’s market value crossed $1 trillion for the first time in two years after the election results. The Trump campaign did not respond to requests for comment.
South Korea has welcomed a rare conciliatory response from North Korea, calling it a “meaningful step” towards easing military tensions...
Start your day informed with the AnewZ Morning Brief. Here are the top ...
Oil prices climbed sharply on Tuesday as the world watched anxiously for a U.S.-imposed deadline for Iran to reopen the Strait of Hormuz, the cruci...
At least 10 people have died and several others were wounded after an Israeli airstrike on a neighbourhood outside a school sheltering displaced Pa...
The U.N. Security Council is expected to vote on Tuesday (April 7) on a resolution to protect commercial shippi...
South Korea has welcomed a rare conciliatory response from North Korea, calling it a “meaningful step” towards easing military tensions on the Korean peninsula.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 7 April, covering the latest developments you need to know.
Oil prices climbed sharply on Tuesday as the world watched anxiously for a U.S.-imposed deadline for Iran to reopen the Strait of Hormuz, the crucial waterway through which roughly a fifth of global oil passes.
At least 10 people have died and several others were wounded after an Israeli airstrike on a neighbourhood outside a school sheltering displaced Palestinians on Monday (7 April), according to health officials.
U.S. President Donald Trump on Monday told reporters that Iran could be taken out in one night, "and that night might be tomorrow night," warning Tehran it had to make a deal by Tuesday night or face wider bombing raids.
The crew of Artemis II mission are entering a pivotal phase of their journey, as they prepare to swing around the Moon and head back towards Earth. Now on the fifth day of their 10-day mission, the four astronauts are already witnessing views no human has ever seen.
U.S. President Donald Trump threatened Iran's energy and transport infrastructure in a social media post containing expletives on Sunday (5 April), as he seperately gave Iran a deadline of Tuesday to reopen the Strait of Hormuz.
A new proposal to end hostilities between the United States and Iran could come into effect as soon as Monday, potentially reopening the vital Strait of Hormuz, a source familiar with the plan said on Monday.
As Hungary approaches a crucial vote, younger citizens who grew up under Prime Minister Viktor Orbán are increasingly backing the opposition, with some saying they may leave if he secures another term.
South Korea has welcomed a rare conciliatory response from North Korea, calling it a “meaningful step” towards easing military tensions on the Korean peninsula.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 7 April, covering the latest developments you need to know.
U.S. Vice President JD Vance has travelled to Hungary in a show of support for Prime Minister Viktor Orbán, as the country prepares for what is expected to be a tightly fought parliamentary election.
As Hungary approaches a crucial vote, younger citizens who grew up under Prime Minister Viktor Orbán are increasingly backing the opposition, with some saying they may leave if he secures another term.
Greek Prime Minister Kyriakos Mitsotakis has urged EU prosecutors to speed up their probe into politicians from his party who are under investigation for fraud. The EU has asked to investigate 11 conservative MPs who are currently protected by parliamentary immunity.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment