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Constancy, which helped Elon Musk gain the platform previously referred to as Twitter in overdue 2022, introduced that its stake within the corporate has fallen 72% in that point, in line with an research via Bloomberg.
In November, Constancy stated its present stake in X was once price $5.6 million in November, a 72% drop from the price of its stake on the time Musk took regulate. Except the corporate has modified its stake in X, the announcement would appear to suggest that the price of X as a complete had additionally fallen via 72%.
Musk purchased the corporate in October of 2022 for $44 billion. If the corporate as a complete has additionally fallen via 72% since his acquire, that suggests it’s now price kind of $12.3 billion, or not up to the $13 billion in debt the billionaire took on to buy the platform.
That poses an issue for banks that cling Musk’s debt. They’ll both want to promote it at a steep bargain or proceed to carry it and doubtlessly see its price sink additional.
Consistent with an FT research previous this week, X debt would most likely promote at 60 cents at the buck. In all, that will imply a $5 billion loss.
