Comment by senko

10 hours ago

As a SpaceX fan, I am saddened by this news.

The only reason for xAI to join SpaceX is to offload Elon's Twitter debt in the upcoming IPO.

9 comments

senko

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bialczabub  9 hours ago

This is just what I was thinking.

Twitter (X) owed $1.3B in debt every year in interest since Musk's takeover. This was before re-financing in a higher interest rate environment. The company was losing $200MM+ per year on ~$5B in revenue before the takeover, and there are reports that revenues have decreased by round 50%.

Best case scenario if we accept those numbers is that X makes $3B per year and about half of that goes immediately out the door in debt payments before paying a cent for the entire business to function.

However, if SpaceX acquires X, that ~$1.5B in interest is a fraction of the $8B In profits SpaceX is allegedly generating annually. Further, they can restructure the debt if it's SpaceX's debt, and not owned by X. Investors will be more likely to accept SpaceX shares as collateral than X.

  • dmix  8 hours ago

    > The company was losing $200MM+ per year on ~$5B in revenue before the takeover, and there are reports that revenues have decreased by round 50%.

    X made a profit last year because they cut costs lower than the drop in ad revenue (which is also slowly recovering). The big question is if they will still be profitable in 2026 year without the US election driving big traffic numbers and ads.

    • bialczabub  7 hours ago

      How do you "know" this? They're private and don't need to report anything.

      You also have to be careful about who said it and what they meant by "profit," because there is gross profit, EBIT, EBITDA, and others.

      2 replies →

isodev  40 minutes ago

So we come to CSAM, online nazi bar and rockets with questionable standards all mixed into one. What could possibly go wrong

guelo  5 hours ago

As an old twitter fan, same. I was hoping elon would lose twitter to the banks in a bankruptcy.