Elon Musk denies reports that he emailed staff saying 'X is struggling and barely breaking even'
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The Wall Street Journal (WSJ) reports that financial institutions that provided funds for Elon Musk's acquisition of Twitter (now X) are preparing to liquidate X's corporate bonds. The WSJ also reports that Elon Musk, the owner of X, sent an email to staff stating that 'X's user growth has stagnated, revenues have been low, and we are barely breaking even,' but Musk denied this in his own statement to X, saying, 'I did not send such an email.'
Exclusive | Wall Street Banks Prepare to Sell Billions of Dollars of X Loans From Elon Musk Deal - WSJ
https://www.wsj.com/finance/banking/wall-street-banks-prepare-to-sell-billions-of-dollars-of-x-loans-c609beb1
Elon Musk email to X staff: 'we're barely breaking even' - The Verge
Wall Street banks plan sale of X debt at a discount | TechCrunch
https://techcrunch.com/2025/01/24/wall-street-banks-plan-sale-of-x-debt-at-a-discount/
Elon Musk, known as CEO of electric vehicle maker Tesla and space venture company SpaceX, acquired Twitter for $44 billion (about 6.87 trillion yen) in November 2022.
Elon Musk, who plans to acquire Twitter for 6.4 trillion yen, appears at Twitter headquarters - GIGAZINE
Musk has received approximately $13 billion in loans from seven financial institutions, including Morgan Stanley, Bank of America, and Barclays.
by NASA Johnson
Until now, financial institutions have been holding on to the bonds acquired through the Twitter acquisition. However, now that X has lost many advertisers, it appears that they have decided that continuing to hold the bonds would only increase their risk.
Twitter adds Twitch to lawsuit against alliance of companies that suspended advertising, claims lost advertising revenue is in the hundreds of billions of yen - GIGAZINE
According to the WSJ, financial institutions plan to sell X bonds as soon as next week for 90 to 95 cents on the dollar.
The WSJ reported that while Musk acknowledged X's growing influence, the company's finances were struggling, with 'user numbers stagnating, revenues tepid, and we're barely breaking even,' in an email to staff.
However, Musk denied the WSJ report in a post on his X account, saying, 'This article is a lie. I never sent that email. The WSJ is lying.'
This report is false. I sent no such email.
— Elon Musk (@elonmusk) January 25, 2025
WSJ is lying.
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