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Elon Musk now holds the title of the highest debtor CEO in the United States.
As widely reported earlier this week, Elon Musk successfully negotiated the purchase of Twitter for $44 billion USD. This deal is regarded as one of the highest-value acquisitions and has garnered significant media attention throughout 2022.
According to information released by AFP, Elon Musk allocated $21 billion from his personal account to finance the $44 billion Twitter acquisition. The remaining amount was borrowed from Morgan Stanley and several other financial institutions in the form of collateral. Musk's primary collateral for these loans is a substantial amount of stock, predominantly from Tesla. This is the primary reason for the consecutive drop in Tesla's stock price following Musk's announcement of the Twitter acquisition.
According to CNBC, including the loan to acquire Twitter, Elon Musk has pledged approximately $90 billion worth of stock. This staggering figure elevates the SpaceX CEO to the position of the most indebted CEO in the United States, a title previously held by Oracle CEO Larry Ellison.
It remains uncertain whether the acquisition of Twitter will lead Elon Musk to further success or if it will be a significant stumbling block resulting in bankruptcy. Perhaps only time will reveal the most accurate answer. Let's wait and see.
Summary video of the article:
After acquiring Twitter, Elon Musk becomes one of the biggest debtors in the US
