Musk Assures Banks of No Losses Amid X's Declining Performance

Banks face potential $2 billion loss as advertising revenue plummets following Musk's controversial comments.

Elon Musk has reportedly assured the banks that financed his $44 billion acquisition of Twitter (now known as X) that they would not incur any financial losses, despite the company's declining performance.
The banks, including Bank of America, Barclays, and Morgan Stanley, face the prospect of significant losses, with estimates suggesting a $2 billion loss if they were to sell their debt currently.
Since the acquisition, X has experienced a substantial decline in advertising revenue, partly due to Musk's controversial comments on the platform, leading to a withdrawal of advertisers such as IBM, Apple, and Disney.
There is a growing concern that the banks might not be able to divest their debt in 2024, potentially resulting in their having to maintain the debt on their books at a depreciated value.
Despite the challenges, the lenders are choosing to hold onto the debt, in hopes that X's performance will improve.