February 8, 2023

Money News PH

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Elon Musk is selling another $3.9 billion in Tesla stock

Twitter is in trouble. Some major advertisers have stopped spending on Twitter due to the change of control. A top ad exec, Sarah Personette, resigned the day after Musk acquired it. Musk met with some advertisers himself, and the result was so poor that during the meeting, some executives, Vox Media, shifted their spend away from Twitter Kara Swisher reports. Some of Musk’s comments and moderation actions on Twitter have made advertisers particularly nervous. Twitter is not profitable and relies on advertising for the vast majority of its revenue. The company also has to pay about $1 billion a year in interest on the debt Musk took on to buy it.

One way Musk can ensure his loans are paid independently of Twitter’s advertising business is to pay them himself. Puck’s William Cohan has suggested that Musk paying the interest himself is a likely outcome. But to do that, Musk needs cash, and to get cash he needs to sell Tesla stock.