Reporter of Meijing: Wen Qiao Reporter of Meijing: Lan Suying
Recently, on an auction website, office equipment and furniture and appliances that were originally worth thousands of thousands of dollars were all sold for only US$25 or US$50, and these assets came from the highly-watched Twitter.
In one and a half months after Tesla CEO O Elon Musk took over, Twitter had laid off more than half of its employees and also stopped service in employee canteens. It is not surprising that it sold excess furniture and equipment.
In order to promote Twitter's reform, Musk even mobilized its companies to provide support, authorizing executives from Space X, Tesla and Boring Company to work for it. In terms of funds, Tesla seems to be becoming the "payment" target of Twitter.
As the market's concerns about Musk's flawless consideration of Tesla intensify, investors' selling of Tesla stock is accelerating. On December 12, local time, as of the closing of U.S. stock , Tesla's stock price fell 6.27%, and its market value evaporated by nearly 250 billion yuan (about 35.4 billion US dollars) overnight, falling to its lowest since November 2020. Musk also lost the throne of the richest man in the world and was surpassed by Bernard Arnault, chairman and CEO of LVMH, the parent company of LVMH.
"sells" Twitter's property at a low price, and the "old era" is gone forever
According to CNN, the website of Heritage Global Partners, which led to the auction, said that the online auction will start on January 17 next year and end the next day. All assets start at a price ranging from $25 to $50.
Image source: Heritage Global Partners Website Screenshot
Bidders can only use US dollar and bank wire transfers, and cannot use credit cards. In addition, the winner will also have to pay 18% of the buyer's commission and 8.63% of the tax. In an interview with Fortune magazine, Nick Dove, the representative of the aforementioned auction website, said that the auction has nothing to do with the company's financial situation.
Most of these auction items are projectors, iMac screens, standing desks, espresso machines, and electric bicycle charging stations. But one item is particularly eye-catching - the well-known little bluebird logo statue on Twitter.
Image source: Heritage Global Partners Website Screenshot
It is reported that these auction items represent the Internet social trend caused by Twitter as a phenomenal product. With the auction of the little blue bird, these memories of the old era may also disappear with the auction.
According to NPR, Twitter recently announced a new version of Twitter certification service, which distinguishes certified users in three colors: gold represents certified companies, gray represents government, and blue used previously represents individuals.
Twitter is in debt dilemma, Tesla "pay"?
In order to promote Twitter's reform, Musk even mobilized his company to provide support, authorizing executives from Space X, Tesla and Boring Company to work for it.
In terms of funds, Musk's Tesla seems to be becoming the "payment" target for Twitter. In early November, Musk sold nearly $4 billion in Tesla stock. After announcing the acquisition of Twitter, Musk sold more than $19 billion in Tesla shares this year.
. According to Bloomberg, citing people familiar with the matter, investment banks that provide syndicated loans for Musk to acquire Twitter intend to refinance the transaction. They hope to replace the current debts on Twitter with margin loans for Tesla stocks, and Musk may be responsible for repaying these loans in person.
The margin loan is one of several options discussed by the banking group led by Morgan Stanley and Musk’s advisers, in order to reduce the $13 billion debt burden that Musk used to acquire Twitter in October. According to media reports, Musk's leveraged financing has caused the debt and losses to Twitter and investment banks to be extremely heavy. After Musk took over Twitter, the serious loss of advertisers led to further reducing the ability to repay debts, and investment banks therefore wanted to turn to refinancing.
Bloomberg reported that banks have been unable to find buyers for Twitter debt and face the possibility of substantial losses.Meanwhile, Musk is also facing increasing pressure to reverse the already troubled Twitter financial situation.
The focus of financing discussion so far is how to convert $3 billion in unsecured debt, with the interest rate of on Twitter at 11.75%, which is the highest guarantee provided by investment banks when they agreed to raise funds for the acquisition in April. According to the current debt structure, Twitter is expected to face an interest cost of about $1.2 billion a year. However, it is not clear what the interest rate for margin loans is.
Tesla's market value evaporated by nearly 250 billion overnight, and Musk lost the throne of the richest man
. For Musk, the trouble he faces is more than that, and investors' selling of Tesla stocks is accelerating.
On December 12, local time, as of the close of US stocks, Tesla's stock price fell 6.27%, closing at US$167.82 per share, and its market value evaporated by nearly 250 billion yuan (about US$35.4 billion) overnight, falling to its lowest since November 2020. So far this year, the stock has fallen by more than 58%, and its market value has fallen by more than half.
Image source: Google Finance
According to reports, partly because after Musk acquired Twitter for $44 billion, investors were worried that he would focus more on Twitter and had no time to manage Tesla, so he quickly sold Tesla stocks.
On December 13, real-time data from the " Forbes " Rich List showed that Elon Musk had lost the throne of the world's richest man and was surpassed by Bernard Arnold, chairman and CEO of Louis Vuitton's parent company LVMH. Data shows that Arnold's personal wealth is about US$186.2 billion, while Musk's current net worth is US$181.3 billion.
Image source: Forbes Rich List real-time data screenshot
Since surpassing Amazon founder Bezos became the world's richest man, Musk has been at the top of the Forbes Rich List. Tesla shares are its main source of wealth, and the electric car maker's stock price soared by more than 1,000% in two years. However, it is also because of Tesla's stock price plunging this year that Musk's wealth has evaporated by more than 100 billion US dollars.
According to FactSet data, Musk currently owns 14.11% of Tesla's outstanding shares, and the company's market value as of Monday's closing price was about $530 billion. In addition, Musk also owns more than 40% of shares in .
Daily Economic News
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