Elon Musk’s recent ascent as a close advisor to President-elect Donald Trump has instilled renewed optimism among Wall Street banks regarding the potential sale of $13 billion in debt associated with Musk’s acquisition of X Corp., formerly known as Twitter.
Major financial institutions, including Morgan Stanley and Bank of America, are hopeful that Musk’s enhanced political influence, coupled with increased user engagement on the platform during significant events, will bolster X Corp.’s revenue streams. This anticipated financial improvement could make the substantial debt more attractive to potential buyers.
However, the platform’s transformation under Musk’s leadership has elicited mixed reactions. His policy changes have led to a decline in advertising revenue and a migration of users to alternative social media platforms. These developments have prompted some banks to reassess their positions, with certain institutions already recording losses on the debt and deliberating whether to retain or divest their holdings.
The financial community is closely monitoring how Musk’s political engagements and strategic decisions will influence X Corp.’s financial health and the broader social media landscape. The interplay between Musk’s political stature and the platform’s economic performance remains a focal point for stakeholders.
