Technology
Elon Musk Has a Bigger Problem Than Twitter Bots: A Huge Debt Burden
- Interest costs look like they will cause Twitter to burn cash
- ‘This is just a bad capital structure,’ an investor says
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Elon Musk may be directing his buyer’s remorse at Twitter Inc.’s bot problem. But underpinning the deal is a $13 billion debt bill that’s looking like a bigger burden by the day.
The package, drummed up in a rush and signed by banks before the end of the billionaire’s beloved April 20 weed holiday, will leave the social media platform with an annual interest expense approaching $1 billion, giving the company an alarmingly small margin for error.