Debt sales by banks tied to Elon Musk’s 2022 Twitter buyout reached $5.5 billion, signaling a rise in Wall Street confidence in the social media platform. Higher demand and pricing boosts indicate that investors view X more positively, particularly after Musk’s recent involvement in Washington politics.
Morgan Stanley-led banks sold debt at a rate of $0.97 on the dollar, exceeding initial expectations of $0.95. This represents a 1% increase from previous sales. The banks initially fronted $13 billion in financing for Twitter when Musk acquired it, but those loans struggled to regain value due to X’s poor performance.
However, recent improvements in ad revenue and a claim on Musk’s AI startup xAI Corp may have contributed to the increased demand. Musk is set to speak at a JPMorgan event this week, where he aims to explain potential cost savings identified by his new role in Washington.
The upcoming address comes as part of Musk’s efforts to restructure or shut down government agencies under his new Department of Government Efficiency (DOGE). While the impact of these actions remains unclear and may face court challenges, they have sparked interest among investors. JPMorgan CEO Jamie Dimon expressed optimism about working with Musk, calling him “our Einstein.”
Source: https://finance.yahoo.com/news/musks-value-on-wall-street-is-rising-as-banks-find-buyers-for-x-loans-193244984.html