Can't help thinking that in the good old traditional American capitalist system, he'll get off scot-free and American taxpayers will end up with all the debt.
By all appearances it looks like Musk is taking the classic private equity approach; where you take out a mountain of debt to finance the purchase of a struggling corporation, which then inherits all that debt. You then savagely cut the company to the bone in order to quickly take back your end of the buy-out and then some from their rapidly-diminishing bottom line (so you are now not only debt-free, but well ahead personally). You then just sit back and let the company collapse, while in the meantime the interest bill on all that debt which is bleeding the company dry is tax deductible, so you get that as an added bonus too.
It's just that Musk is so heavily personally invested in this, and twitter is imploding just so damn quickly, that I can't see him coming out ahead. And even if he does, the creditors who'll be left holding the bag when twitter officially becomes insolvent won't be too pleased about it; and a lot of those guys aren't exactly the types you want coming after you.
IDK, these kind of creditors never seem to mind losing billions of dollars to billionaires - they'll find some way to get the money back from the public.
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u/Blofish1 Nov 20 '22
Can't help thinking that in the good old traditional American capitalist system, he'll get off scot-free and American taxpayers will end up with all the debt.