Twitter Inc has made its first interest payment under Elon Musk after the billionaire took the social media company private last year using about $12.5 billion of debt, Bloomberg News reported on Monday, citing people with knowledge of the matter.

Twitter paid a group of seven banks, led by Morgan Stanley, which became stuck with the debt after they were unable to sell it to outside investors, the report added.    Twitter, Musk and Morgan Stanley did not immediately respond to Reuters requests for comment.

Apart from the funds borrowed from a syndicate of banks including Morgan Stanley and Bank of America Corp, the Tesla boss has also offloaded shares in the electric-vehicle maker to fund his $44 billion takeover of Twitter.

Since Musk took charge of the social media platform in October, he has focused on reducing costs by laying off half the workforce and introducing new plans for Twitter Blue subscription service, which offers the sought-after “verified” badge.

Twitter has also seen advertisers flee amid worries about Musk’s approach to content moderation rules, impacting its revenue. Musk in November also pointed out that Twitter had seen a “massive” drop in revenue and blamed activist groups for pressuring advertisers.

Source: Euronews Next

BDST: 1502 HRS, JAN 31, 2023
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