According to the Financial Times and Bloomberg January 30 news, people familiar with the matter revealed that Twitter has paid the first $ 300 million in interest on the $ 13 billion debt that Elon Musk used to acquire the platform.
On Friday, it was reported that Twitter settled its quarterly interest payments with seven banks, including Morgan Stanley. The looming bill has been closely watched, as it is Elon Musk’s first major test of Twitter’s financial management and concerns about its financial health are growing.
In addition to the money borrowed from a syndicate of banks, including Morgan Stanley and Bank of America, this Elon Musk also sold off shares of Tesla to fund its $44 billion acquisition of Twitter.
Since Elon Musk took the helm of the social media platform in October, he has been focused on cutting costs through layoffs and launching new plans for the Twitter Blue subscription service.
Twitter’s advertisers have also fled due to concerns about Elon Musk’s approach to content review rules, affecting its revenue. Elon Musk also noted in November that Twitter had seen a “massive” drop in revenue and blamed activist groups for pressuring advertisers.
