{"id":22205,"date":"2025-02-14T02:25:44","date_gmt":"2025-02-14T03:25:44","guid":{"rendered":"https:\/\/medexperts.pro\/?p=22205"},"modified":"2025-02-14T03:40:33","modified_gmt":"2025-02-14T03:40:33","slug":"banks-sell-4-7-billion-of-xs-debt-in-a-sign-of-investor-demand","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=22205","title":{"rendered":"Banks Sell $4.7 Billion of X\u2019s Debt, in a Sign of Investor Demand"},"content":{"rendered":"
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The social media company is attracting investor interest because of Elon Musk\u2019s close ties to President Trump and a recent jump in revenue.<\/p>\n

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When Elon Musk bought X for $44 billion<\/a> in 2022, more than a quarter of that was financed by loans from banks including Morgan Stanley. Banks normally quickly sell off such loans, but in this case they kept much of that debt because investors were reluctant to bet on the social media company\u2019s floundering business.<\/p>\n

Mr. Musk\u2019s newfound power in President Trump\u2019s administration has helped change investors\u2019 minds.<\/p>\n

On Thursday, the banks sold roughly $4.7 billion of X\u2019s debt, according to two people familiar with the transaction, more than the $3 billion that they had originally intended to sell. <\/p>\n

Mr. Musk, who has become a close adviser to the president and is running a government efficiency initiative, has faced increasing questions about whether the companies he leads \u2014 including the electric automaker Tesla and the rocket company SpaceX \u2014 are benefiting from his position<\/a> as Mr. Trump\u2019s right-hand man.<\/p>\n

X has become a go-to platform for information on the administration\u2019s plans, which Mr. Musk broadcasts to his account\u2019s more than 217 million followers<\/a>. Advertisers have returned in droves to X, people familiar with the deals said, fueling a boost in revenue. The company told investors that its revenue in December jumped 21 percent from a month earlier, a person with knowledge of the finances said.<\/p>\n<\/div>\n<\/div>\n

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An X spokesman and Morgan Stanley declined to comment. Bloomberg previously reported the jump in revenue<\/a> and details of the transaction<\/a>.<\/p>\n

Selling the debt \u2014 which totaled $12.5 billion at the time of the acquisition \u2014 helps Mr. Musk and the banks, which have been saddled with it for two years. Just two months ago, investors were negotiating to buy that debt at a loss of 10 percent to 20 percent for the banks, one person involved in the discussions said.<\/p>\n

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The social media company is attracting investor interest because of Elon Musk\u2019s close ties to President Trump and a recent jump in revenue.When Elon Musk bought X for $44 billion in 2022, more than a quarter of that was financed by loans from banks including Morgan Stanley. Banks normally quickly sell off such loans, but in this case they kept much of that debt because investors were reluctant to bet on the social media company\u2019s floundering business.Mr. Musk\u2019s newfound power in President Trump\u2019s administration has helped change investors\u2019 minds.On Thursday, the banks sold roughly $4.7 billion of X\u2019s debt, according to two people familiar with the transaction, more than the $3 billion that they had originally intended to sell. Mr. Musk, who has become a close adviser to the president and is running a government efficiency initiative, has faced increasing questions about whether the companies he leads \u2014 including the electric automaker Tesla and the rocket company SpaceX \u2014 are benefiting from his position as Mr. Trump\u2019s right-hand man.X has become a go-to platform for information on the administration\u2019s plans, which Mr. Musk broadcasts to his account\u2019s more than 217 million followers. Advertisers have returned in droves to X, people familiar with the deals said, fueling a boost in revenue. The company told investors that its revenue in December jumped 21 percent from a month earlier, a person with knowledge of the finances said.An X spokesman and Morgan Stanley declined to comment. Bloomberg previously reported the jump in revenue and details of the transaction.Selling the debt \u2014 which totaled $12.5 billion at the time of the acquisition \u2014 helps Mr. Musk and the banks, which have been saddled with it for two years. Just two months ago, investors were negotiating to buy that debt at a loss of 10 percent to 20 percent for the banks, one person involved in the discussions said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and\u00a0log into\u00a0your Times account, or\u00a0subscribe\u00a0for all of The Times.Thank you for your patience while we verify access.Already a subscriber?\u00a0Log in.Want all of The Times?\u00a0Subscribe.<\/p>\n","protected":false},"author":1,"featured_media":22207,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-22205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/22205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22205"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/22205\/revisions"}],"predecessor-version":[{"id":22208,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/22205\/revisions\/22208"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/22207"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}