How Elon Musk's 'Hung' Debt After Buying Twitter Created the Worst Financial Crisis for Banks Since the 2008 Financial Crisis

Benzinga 2024-08-20

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Elon Musk's $44 billion acquisition of Twitter, now X, has led to the worst merger-finance deal for banks since the 2008 financial crisis. Seven banks, including Morgan Stanley and Bank of America, lent $13 billion for the deal, expecting to offload the debt quickly. However, due to X's weak financial performance, the loans have remained stuck on the bank's balance sheets, causing significant financial strain and write-downs. This "hung" debt has negatively impacted bank profits, market standings, and employee compensation, making it one of the most challenging deals since the financial crisis.

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