Reported about 2 months ago
Elon Musk's acquisition of Twitter has been deemed a potentially disastrous leveraged buyout for banks, reminiscent of the pre-Lehman Brothers crisis era. The $44 billion deal, which relied significantly on borrowed funds, has now left investment banks struggling to offload associated debt due to unfavorable market conditions and Twitter's poor financial performance. As Musk faces mounting pressure to restructure the debt, concerns are rising among Tesla shareholders about the potential impact on Tesla's stock as Musk may be forced to sell shares to cover Twitter's financial issues.
Source: YAHOO