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Wall Street Banks Set to Sell X Debt at a Reduced Price

Bankers are reportedly preparing to sell off the debt used to finance Elon Musk’s social media platform, which he acquired for $44 million in 2022, including $13 billion in loans. Morgan Stanley is spearheading the effort, aiming to sell senior debt for between 90 and 95 cents on the dollar, as reported by the WSJ.

According to the outlet, bankers usually don’t hold onto debt for extended periods, but times of volatility can disrupt those plans. Such volatility has characterized X since Musk’s acquisition, with advertisers fleeing due to concerns that extreme content on the platform may harm their brands. While sources from the Journal indicate that X’s financial situation is improving, Musk himself informed employees in a January email referenced by the WSJ that, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”

In that same email, Musk reportedly pointed out X’s “power” in “shaping national conversations and outcomes.” However, it remains unclear whether this influence is enough to entice advertisers back. Additionally, a gesture made by Musk at President Trump’s inaugural event, which many interpreted as a fascist salute, may further complicate matters for major brands.

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