blue tick business...is going good...

[dasari4kntr]

 

 

[Thokkalee]

I think they rushed this feature without thinking this through 😄

Any new features on Twitter will have more implications than Musk can even imagine.. and Twitter have lot more visibility than ever before.. 

[Thokkalee]

But running fake or parody accounts will come with a cost for spammers and trollers… everytime they get a tick mark, they lose $8 to Twitter… over time, they will lose lot of money and Twitter will get lot of money… 

[Anta Assamey]

Yearly 1 billion kattali Musk .... Tippalu mamululga levu ..

[dasari4kntr]

32 minutes ago, Thokkalee said:

I think they rushed this feature without thinking this through 😄

Any new features on Twitter will have more implications than Musk can even imagine.. and Twitter have lot more visibility than ever before.. 

they have to rush…

1B interest payments per year ani chadiva…(i need to go through that article  again)

 

[Thokkalee]

2 hours ago, Anta Assamey said:

Yearly 1 billion kattali Musk .... Tippalu mamululga levu ..

1 billion a year is peanuts for musk mama… he has been spending lot of money (billions) on boring company, starlink and spacex and Tesla before he started making any money on these companies (only Tesla makes any money for him).. 

[dasari4kntr]

47 minutes ago, Thokkalee said:

1 billion a year is peanuts for musk mama… he has been spending lot of money (billions) on boring company, starlink and spacex and Tesla before he started making any money on these companies (only Tesla makes any money for him).. 

debt ante debt ane meanings eppudo poyayi...before reading the below comment...see this meme first...this represents the todays debt market...

 

 

Now.....i highly recommend this artcile...

https://puck.news/the-elon-financial-mindfuck/

 

few parts from this article...

Quote

Obviously, the original sin of the deal stems from Elon’s decision to pay $44 billion for Twitter, or 44x for Twitter’s approximately $1 billion in EBITDA. After he altered the capital structure on the deal—to remove a layer of subordinated debt and replace it with more of his own equity—he left himself with a deal that has $13 billion of senior secured debt and $31 billion of equity, $24 billion of which is coming from Elon and $7 billion of which was to come from his buddies. And right now, despite the media narrative and endless think pieces about how this is all just a fait accompli, that $13 billion of committed secured financing is shaping up to be an insidious stick of dynamite that could blow up the whole deal. 

this is one good thing he did...he didnt enter the hell of subordinated debt...but still he has to deal with senior debt...which is less pain than sub ordinated debt...

 

Quote

In this structure, basically all of Twitter’s free cash flow of around $1 billion in a given year will go to pay interest on the two tranches of senior secured debt—and that’s being generous because it assumes the interest rate on the debt remains in the range of 7.5 percent, when it surely could be much higher. But, of course, if it were to be higher—if for instance Elon agreed to modify his original deal terms with the banks—then even more of Twitter’s free cash flow would go to pay the banks’ annual interest. 

Quote

Anyway, it really doesn’t matter if they agree to a higher coupon because, barring some strategic pivot that uncorks significant new revenue and profits, there isn’t the cash flow at Twitter to cover it. All of which likely means that to avoid a payment default after the deal closes, Elon and his equity bros are going to have to cough up the difference between what the banks are owed and what Twitter can pay out of its free cash flow. If they don’t, then all hell could break loose.

Quote

 

Following this thinking through to its logical conclusion provides some unpleasant options for Elon Musk’s ownership of Twitter. With a lower coupon on the debt, the banks will have to discount it dramatically to get it out the door—I’m hearing estimates of a 50 percent discount these days from my Wall Street banker friends—and eat something like a $6 billion loss on a $13 billion loan. Yikes. 

But it only gets worse. What if the banks are able to sell the debt at 50 cents on the dollar? What kind of people on Wall Street buy debt at such a large discount? Why, our old friends at places like Apollo Global Management, Jeffrey Gundlach’s DoubleLine, and other loan-to-own debt vultures. (Once again, Apollo C.E.O. Marc Rowan is at the center of the Wall Street universe.) This is just another strategy in a portfolio of strategies designed to make money. It’s how Apollo once upon a time took control of Aleris, an aluminum company, and how Apollo’s Berry Plastics bought Pliant, another packaging-products company.

If the debt falls into the hands of distressed debt buyers, then Elon and his equity partners have a whole new set of problems. Investors who pay 50 cents on the dollar for debt are entitled to 100 cents on the dollar. If they aren’t paid 100 cents on the dollar, or if an interest payment is missed, or if there is any other kind of payment or technical default, then the distressed debt investor may be entitled to accelerate the payment on the entire debt or to foreclose on their security—the assets of Twitter. In other words, any slip up on the payment front and Twitter’s creditors—not Elon Musk—will be the ones calling the shots at Twitter and controlling the company. They can put Twitter into an involuntary bankruptcy. And guess what? They will not hesitate to do so because that’s what distressed investors do.

 

Quote

Again, following the logic here, if the Twitter debt is worth only 50 cents on the dollar at the moment because of a combination of Twitter’s cash flow, the radically altered interest-rate landscape for leveraged loans, and the pesky reality of a secured loan that is 13x EBITDA, then the Twitter equity underneath that debt—the $31 billion—is technically worthless already, even before the deal closes. If the debt of Twitter is not worth par, or 100 cents on the dollar, then by the logic of distressed investing and bankruptcy proceedings, the equity is pretty much toast. Right now, the market is telling Elon’s Wall Street banks that Twitter is actually worth around $7 billion, or 7x EBITDA, not the 44x EBITDA that he agreed to pay, since it’s at that price that the banks can sell the Twitter bank debt and it’s at that price that the buyers of the bank debt will buy it. Something is worth only what someone will pay for it. And as soon as Elon buys Twitter for $44 billion, the market is saying it’s really only worth the price at which the banks can sell its senior secured debt, or $7 billion.

Quote

To be fair, I am sure Elon has presented his banks with financial projections that show a ramping up of EBITDA under his ownership of the company and that a discounted cash flow analysis shows a higher value. And he might just make that happen one day. But, at the moment, the market is saying Twitter senior secured bank debt will trade at around 50 cents on the dollar, leaving Elon with only one choice: He has to buy the banks down. He has to reduce the leverage on Twitter from 13x EBITDA to something much more in line with what the financial markets are broadcasting. 

 

this is my favorite part...

Quote

None of this had to happen, it goes without saying. It’s the worst version of the worst kind of Prisoner’s Dilemma. For instance, my one-time friend Prince Alwaleed bin Talal, the Saudi billionaire, could have cashed out his roughly $1.9 billion position in Twitter at $54.20 a share along with Twitter’s other big shareholders, such as Fidelity, Vanguard, and BlackRock. But instead he decided to roll over his equity stake into Elon’s Twitter fantasy. He’s probably quite miserable about that decision right now. He could have been a hero and walked off with $54.20 in cash for each of his about 35 million shares. Instead, barring some Twitter miracle, he’ll likely lose most of it, and that’s before the deal closes. Similarly, a16z’s $400 million is heading for rough waters. For Elon’s banks and his equity partners, the Twitter deal has become an unmitigated disaster. 

 

conclusion...

Quote

There have been plenty of disastrous deals in Wall Street history: AOL’s purchase of TimeWarner; Daimler-Benz’s acquisition of Chrysler; the mergers of Sears and K-Mart. There have also been ridiculously stupid leveraged buyouts, such as KKR’s purchase of RJR Nabisco and TXU, or Robert Campeau’s acquisitions and then merger of Allied Stores and Federated Department Stores. But Elon’s acquisition of Twitter may turn out to be the worst of them all. Barring some miracle turnaround plan for Twitter conceived of by the supreme ubermensch himself, he and his fellow investors are likely to lose pretty much every one of the $31 billion in equity they have yet to invest in this ill-conceived lunacy of a deal. It’s going to be quite a show. 

 

[Thokkalee]

Twitter’s price is not based on the current market.. but it is based on the potential value in the next 5 years or so… twitter has been undervalued and underperforming for a long time due to bad management.. look at what Facebook has earned and their valuations or even Snap.. 

Elon managed Tesla from ever getting into bankruptcy while building giga factories and scaling up production… I think he can manage the finances.. mostly he will sell more stake in the company to other investors.. and investors trust him a lot and expect him to deliver another blockbuster.. but this will take some time (years)… you cannot turn around a company in weeks or months… 

[Higher_Purpose]

Ila Oka 6 months blueticks ammesi.. celebrities kondhariki official icchi.. aa tharvatha redtick launch chesthadu … exclusively for celebrities 

[surfExcel]

evad padite vadu teeskuntunnadu. 

[hunkyfunky2]

3 hours ago, Thokkalee said:

I think they rushed this feature without thinking this through 😄

Any new features on Twitter will have more implications than Musk can even imagine.. and Twitter have lot more visibility than ever before.. 

 

5 hours ago, dasari4kntr said:

 

 

 

5 minutes ago, Higher_Purpose said:

Ila Oka 6 months blueticks ammesi.. celebrities kondhariki official icchi.. aa tharvatha redtick launch chesthadu … exclusively for celebrities 

Even a fresh out of elementary school kid will tell you this is a bad idea Ani.

Verified blue tick ( which takes months and trusted blindly) for 10+ years and you give that away for 8$ away and give bull reason like - all are equal and free speech etc beyond laughable. 

They should have created another tier and distinguish old blue tick vs paid blue tick.

 

[dasari4kntr]

7 minutes ago, Thokkalee said:

Twitter’s price is not based on the current market.. but it is based on the potential value in the next 5 years or so… twitter has been undervalued and underperforming for a long time due to bad management.. look at what Facebook has earned and their valuations or even Snap.. 

bro..this is not making sense..it means i will price my asset 10X high now and claims there will be a potential future value...and trying to sell it with future value..?

but buyer does't buy that.. in fact..musk will have cashflow issues...to run the business in order to reach the potential future value... 

7 minutes ago, Thokkalee said:

Elon managed Tesla from ever getting into bankruptcy while building giga factories and scaling up production… I think he can manage the finances.. mostly he will sell more stake in the company to other investors.. and investors trust him a lot and expect him to deliver another blockbuster.. but this will take some time (years)… you cannot turn around a company in weeks or months… 

past business or past scenarios are completely different...even Yahoo! managed very well initial years...and AOL..too..

Tesla business is different model..where there was not much competition..and he didnt have to deal with politics, advertisers and social issues...but now as social media CEO..his position is highly volatile..

i know you have some positive side on musk...i am not complaining that...all i am saying in this economic situation how DEBT markets works...now a days debt is not simple bank loan where you pay every month interest + principe..etc. 

these kind of debts will be traded in markets...they will assess the company performance..some who hold the debt..(mostly sub ordinated) enforce restrictions on way of doing business..too..

i have some suspicion...that the recent layoffs are not musk own decision..but his loan providers caveats... 

[AndhraneedSCS]

11 minutes ago, Higher_Purpose said:

Ila Oka 6 months blueticks ammesi.. celebrities kondhariki official icchi.. aa tharvatha redtick launch chesthadu … exclusively for celebrities 

redtick for $500 per month antademo

[Thokkalee]

29 minutes ago, dasari4kntr said:

bro..this is not making sense..it means i will price my asset 10X high now and claims there will be a potential future value...and trying to sell it with future value..?

but buyer does't buy that.. in fact..musk will have cashflow issues...to run the business in order to reach the potential future value... 

past business or past scenarios are completely different...even Yahoo! managed very well initial years...and AOL..too..

Tesla business is different model..where there was not much competition..and he didnt have to deal with politics, advertisers and social issues...but now as social media CEO..his position is highly volatile..

i know you have some positive side on musk...i am not complaining that...all i am saying in this economic situation how DEBT markets works...now a days debt is not simple bank loan where you pay every month interest + principe..etc. 

these kind of debts will be traded in markets...they will assess the company performance..some who hold the debt..(mostly sub ordinated) enforce restrictions on way of doing business..too..

i have some suspicion...that the recent layoffs are not musk own decision..but his loan providers caveats... 

I don’t expect miracles from him when it comes to twitter.. it is a different beast.. nothing he does will satisfy the left and right and the crowd.. but you never know what will happen to twitter in the future.. he might be successful in providing more features and people might subscribe to it… or may just leave.. 

also his net worth is $170 billion.. why will he have a problem paying 10 billion or so… he managed Tesla when it was on the verge of bankruptcy several times.. there is a reason why he is taking twitter private.. he doesn’t want the stock market pressure on him.. there are enough distractions for him.. remember that he even tried to take Tesla private as he couldn’t focus on product development.. 

reg layoffs, he laid off ppl from Tesla before the down turn started saying that they hired too many ppl and need to cut down.. after every acquisition, layoffs are very common.. especially so in this kinda market.. 

[DuvvaAbbulu]

5 hours ago, Thokkalee said:

I think they rushed this feature without thinking this through 😄

Any new features on Twitter will have more implications than Musk can even imagine.. and Twitter have lot more visibility than ever before.. 

musk is international RGV