Morgan Stanley Leads Wall Street Banks in Selling $3 Billion of Elon Musk's X Debt at 90-95 Cents on Dollar

Jan 24, 2025, 09:07 PM

Wall Street banks, led by Morgan Stanley, are preparing to sell up to $3 billion of debt related to Elon Musk's acquisition of X, the social media platform formerly known as Twitter. The debt, part of a $13 billion package used to finance Musk's $44 billion purchase in 2022, is expected to be sold at a discount of 90 to 95 cents on the dollar. The banks, including Bank of America and Barclays, have been holding onto the debt since the acquisition, facing challenges in offloading it due to X's fluctuating fortunes. Musk's recent comments to X staff via email highlighted the platform's stagnant user growth and unimpressive revenue, stating that the company is 'barely breaking even.' This sale represents a significant move for the banks to alleviate the burden of the debt they've held since financing Musk's purchase.