The Wall Street Journal reports that banks, including Bank of America, Barclays, and Morgan Stanley, plan to sell part of the $13 billion in loans they provided for Musk’s acquisition of the company. These banks had delayed the sale due to economic changes and Musk’s legal battles during the purchase. They intend to sell senior debt at 90-95 cents on the dollar but may keep the riskier parts.
Investors have reduced X’s valuation by 78%, and the platform still has to pay over $1 billion annually in loans. Despite Musk’s optimistic statements in the past, X has yet to achieve “positive cash flow dynamics.”
