How very Trumpian of Musk...to fail on such a scale, taking everyone down with him
The 2022 take-private deal for Twitter has left about $13 billion in 'hung' debt held by Bank of America, Morgan Stanley and other big lenders
Elon Musk's $44 billion purchase of Twitter Inc. has emerged as the worst buyout since the global financial crisis for seven large financial institutions that provided debt for the deal, the Wall Street Journal reported Tuesday.
The deal has now run up about $13 billion in so-called hung debt, which is money owed to banks that has not been sold partly because the value of the underlying asset has dropped so sharply due to its weak performance.
Citing data from Pitchbook, the Journal said Twitter ranks as the biggest hung deal since the turmoil that followed the collapse of Lehman Brothers some 16 years ago, and one of the largest hung deals of all time.
It's also been sticking around on banks' balance sheets longer than any other hung loan since the 2008-'09 financial crisis, at about 20 months and counting. By contrast, most of the troubled loans in the wake of the financial crisis were sold within about a year.
The seven major banks that lent the money for Twitter (which has since been renamed X) are Bank of America Corp. (BAC), Morgan Stanley (MS), Barclays (BCS), Mitsubishi UFJ Financial Group (MUFG), BNP Paribas (FR:BNP), Société Générale (FR:GLE) and Mizuho (JP:8411).
The 2022 take-private deal for Twitter has left about $13 billion in 'hung' debt held by Bank of America, Morgan Stanley and other big lenders
Elon Musk's $44 billion purchase of Twitter Inc. has emerged as the worst buyout since the global financial crisis for seven large financial institutions that provided debt for the deal, the Wall Street Journal reported Tuesday.
The deal has now run up about $13 billion in so-called hung debt, which is money owed to banks that has not been sold partly because the value of the underlying asset has dropped so sharply due to its weak performance.
Citing data from Pitchbook, the Journal said Twitter ranks as the biggest hung deal since the turmoil that followed the collapse of Lehman Brothers some 16 years ago, and one of the largest hung deals of all time.
It's also been sticking around on banks' balance sheets longer than any other hung loan since the 2008-'09 financial crisis, at about 20 months and counting. By contrast, most of the troubled loans in the wake of the financial crisis were sold within about a year.
The seven major banks that lent the money for Twitter (which has since been renamed X) are Bank of America Corp. (BAC), Morgan Stanley (MS), Barclays (BCS), Mitsubishi UFJ Financial Group (MUFG), BNP Paribas (FR:BNP), Société Générale (FR:GLE) and Mizuho (JP:8411).
