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Musk has said in his presentation that with the help of the new steps, the company will create enough cash flow that it can repay the debt of banks. This deal to buy Twitter is worth $ 44 billion, out of which a loan of about $ 25 billion has been agreed, while the rest is going to be invested by Musk himself.
With the help of Twitter’s spending cuts and new ways of earning, Musk will repay the debt of the banks. Musk to get higher loans for deals from banks (Elon Musk) has put this strategy in front of the banks. Reuters has reported on the basis of sources that in the coming times, Twitter (TwitterThere may be a cut in the salary of executives and board members and new ways of earning can be announced through tweets. Elon Musk has offered to buy Twitter in a $44 billion cash deal. Musk has said in his presentation that with the help of the new steps, the company has a lot of cash flow (Cash Flow) Will make that she can repay the loans of the banks. According to sources, in the proposal placed before the banks, Musk has given information about the direction of his steps, although what these steps will be is not clear at the moment.
what can be the steps
To increase Twitter’s revenue to pay off high debt, Musk has told banks that he is looking for ways to increase revenue through very important information or tweets that go viral and can implement these in the coming times. The idea is that when a third party website wants to use tweets from a verified person or organization, it will have to pay a fee. Earlier in a tweet, Musk said that he does not want to rely on advertisements to increase Twitter’s revenue, but instead wants to emphasize on increasing Twitter’s own income. Musk later deleted this tweet. That is, there is a possibility that Twitter can find new ways to earn money from its services. On the other hand, Musk has already talked about reducing the salary of board members and executives. At the same time, according to the news of Bloomberg, Musk has also talked about cutting jobs. However, the source clarified that Musk will not talk about job cuts before taking full control of Twitter. In fact, some banks had feared that after Musk’s control, aggressive tactics could lead to qualified employees leaving Twitter, which would have a bad effect on business. Along with this, Musk has also mentioned the margin of Twitter, which is less than other companies in the sector. Musk has put this in front of the banks as an opportunity.
$44 billion deal
This deal to buy Twitter is worth $ 44 billion. To complete the deal, a $ 13 billion loan has been arranged in the name of Twitter, a margin loan of $ 12.5 billion has been arranged on Tesla stocks, Musk will put the rest of the amount from his own pocket. This debt of $ 13 billion is 7 times of Twitter’s estimated EBITDA for the year 2022. This is the reason why some banks have only participated in giving margin loans. Musk gave his offer to Twitter on April 14, while on April 21, Musk submitted the commitment to give loans to the banks, only after which Twitter gave the green signal to the deal.
Source: www.tv9hindi.com
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