Shareholders allege that Elon Musk and his wealth manager, Jared Birchall, knowingly delayed disclosing Musk's 5 per cent Twitter stake by 11 days past the SEC deadline, allowing Musk to buy additional shares at lower prices and save over USD 200 million Read More: https://lnkd.in/gwpJ8kPs Annurag Batra | Tanvie Ahuja | Noor Fathima Warsia
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Musk Calls Twitter Stake Delay a Mistake Seeking to dismiss a shareholder lawsuit alleging he defrauded investors, Musk says he did not seek to buy more shares at cheaper prices after amazing more than 5 percent of the company. Read more here: https://lnkd.in/dDMVVzEt . . Like 💝 Comment below ⏬ Share ✅ For More Such Updates Follow Us @qnewshub @qnewscrunch . . #qnewshub #qnewscrunch #StartupFunding
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An $11B valuation is still 4-5x its underlying, real, value … Fidelity cuts value of X stake, implying 73% decline in former Twitter since Elon Musk's takeover Fidelity’s Blue Chip Growth Fund cut the value of its position in X by 5.7% in February, implying a 73% decline in the former Twitter Inc. since Elon Musk bought the social-media company. Fidelity, which gained a stake in X by helping Musk complete his $44 billion purchase in October 2022, valued the position at $5.28 million as of Feb. 29, according to a report posted Saturday listing the fund’s holdings. A month earlier, the value was $5.6 million. The overall value of the Blue Chip Growth Fund’s X stake has fallen 73% since Musk’s purchase, suggesting a similar drop in the value of the company because the fund hasn’t disclosed any change in its position in X. X has been trying to lure back advertisers since Musk’s chaotic takeover. Last year, ad sales were estimated to be roughly $2.5 billion, falling short of the company’s $3 billion target, Bloomberg reported. Fidelity and X didn’t immediately return emails seeking comment sent outside regular business hours.
Fidelity cuts value of X stake, implying 73% decline in former Twitter since Elon Musk's takeover — FORTUNE
apple.news
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Ouch. Fidelity has marked its Twitter stake down by 71.5% since it participated in Musk's take-over. - Nobody likes a write-down, but when a takeover is $44 bn, a mark-down really hurts. (Nota: we don't know the size of Fidelity's stake). - It will hurt Fidelity only to a minor degree. Instead, it will hurt Fidelity's own clients. They are the true investors. - I'm wondering which type of investors these clients are, hedge fund (accredited) or mutual fund (retail)? The later would certainly open issues of due diligence and suitability. - Some say that Musk is playing 3-D chess and has a wise plan for Twitter. Hmm... Why use secrecy when you are already a major shareholder and the CEO? Bringing the stock down to increase your stake ahead of a strategy disclosure would be a clear case of insider trading. Looks like mis-management at this stage. #Investing #Fidelity #Twitter #PrivateEquity #Valuations #FinancialMarkets Navesink International (https://lnkd.in/eq8vGgP) is the home of the best industry experts.
Fidelity’s X Stake Has Fallen 72% in Value Since Musk Takeover
bloomberg.com
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Elon Musk's 'X' faces a 71% decline in value since his initial purchase. The Twitter verse witnesses the fluctuations of Musk's investments. 📉🚀 Visit our Website: https://bit.ly/3DXrwYp #ElonMusk #Investments #lifepakistani #StockValue #InvestmentUpdate #FinancialNews #ElonMuskInvestment #TwitterStock #MarketFluctuations #InvestmentPerformance #FinancialUpdate #MarketValue #StockMarketNews #FinancialInvestment
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X value tumbles under Musk reign X formerly Twitter is worth 71.5% less than when Elon Musk bought it in late 2022, according to a new Fidelity disclosure. The financial services company, that helped Musk buy the social network, said X lost more than 10% of its value in November alone. Fidelity valued its stake in X at more than $19 million when Musk purchased the site; now, that figure has dropped to just under $5.6 million. What actions would investors take? #x #twitterx #elonmusk #millionairemindset #fidelity #fidelityinvestments #financialadvisors #investors
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The Wall Street Journal argues that the Twitter, Inc. Is now the worst leveraged buyout since the GFC. It is interesting to note that J.P. Morgan and Goldman Sachs were not part of the syndicate, thus avoid the losses and ongoing risk. JPM has historically had a difficult relationship with Musk as a result of a disputed trade that was litigated. Apparently, more recently Musk has appeared at JPM events with Jamie Dimon. Elon Musk and Twitter use a combination of on and off balance sheet financing, including margin loans. We believe that the market often ignores, misunderstands or is unaware of off balance sheet financing. Altice Group is another prime example. In leveraged finance, our lesson is that is it vital to be compensated for all risks, and there is often a conflict of interest between the borrower, syndicate banks and loan/bond holders. #leveragedfinance #LBO #credit
Elon Musk’s Twitter Takeover Is Now the Worst Buyout for Banks Since the Financial Crisis
wsj.com
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Elon Musk secured loans totalling $13 billion to acquire Twitter (now X) in October 2022. At the time, this seemed like a reasonable bet for the banks, given Musk’s track record of business success. However, the subsequent financial performance of X and other factors have complicated matters. The loans extended by seven major banks are now “hung,” meaning they cannot be offloaded. This situation is the worst the banking industry has seen since the real estate crisis of 2008. Why are the loans stuck? X’s Financial Struggles: X’s value has plummeted significantly since the acquisition. As of March 31, it has lost an estimated 71.5% of its value. Higher Interest Rates: The banks are holding onto the loans due to higher interest rates and the inability to find buyers. Regulatory Scrutiny: Holding high-risk loans can attract unwanted attention from regulators. Impact on Banks: The hung loans are causing ripple effects for the bank, even pay for Barclays’ merger department is affected. Banks’ standing in investment banking league tables may suffer due to this deal. Musk faces annual interest payments of approximately $1.5 billion on these loans. X is also dealing with a lawsuit from a Taiwanese tech firm over unpaid server parts, adding to Musk’s headaches. In summary, the Twitter/X acquisition has turned into a financial predicament for the banks, impacting their balance sheets and reputation. Musk’s ambitious move now poses significant challenges for all parties involved.
The Wall Street Journal argues that the Twitter, Inc. Is now the worst leveraged buyout since the GFC. It is interesting to note that J.P. Morgan and Goldman Sachs were not part of the syndicate, thus avoid the losses and ongoing risk. JPM has historically had a difficult relationship with Musk as a result of a disputed trade that was litigated. Apparently, more recently Musk has appeared at JPM events with Jamie Dimon. Elon Musk and Twitter use a combination of on and off balance sheet financing, including margin loans. We believe that the market often ignores, misunderstands or is unaware of off balance sheet financing. Altice Group is another prime example. In leveraged finance, our lesson is that is it vital to be compensated for all risks, and there is often a conflict of interest between the borrower, syndicate banks and loan/bond holders. #leveragedfinance #LBO #credit
Elon Musk’s Twitter Takeover Is Now the Worst Buyout for Banks Since the Financial Crisis
wsj.com
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Elon Musk wants to dismiss a lawsuit by former Twitter shareholders who said he waited too long to reveal his large ownership stake in the social media company. Musk says his delay was a mistake, and it's implausible to believe he wanted to defraud shareholders. Investors in the proposed class action said Musk and his wealth manager knew a U.S. Securities and Exchange Commission rule required Musk to disclose his 5% Twitter stake by March 24, 2022, but waited another 11 days. This allowed Musk to buy more shares at cheap prices, saving over $200 million. Musk said he had intended to reveal his Twitter stake at the end of 2022 but disclosed it promptly after realizing he misunderstood the SEC disclosure rule. He denied the investors' claim that an unnamed Morgan Stanley banker helped devise a trading strategy to amass Twitter shares without alerting the broader market. The case is ongoing, with lawyers for the investors, led by an Oklahoma public pension fund, yet to respond to Musk's latest filing. The SEC has also probed Musk's Twitter stock purchases. Musk eventually bought Twitter for $44 billion in October 2022. . . . #Litigation #RegulatoryOversight #Retail #Musk #Twitter #SEC #Disclosure #ClassAction #Investors #Shareholders #tribunetrends
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Billionaire Elon Musk-owned X has changed its website URL from Twitter[dot]com to X[dot]com. The development comes nearly 10 months after Musk renamed the platform to X. He acquired Twitter in a $44 billion deal in October 2022. "All core systems are now on "x[dot]com," Musk wrote on X. Read the full story here: 👇 https://lnkd.in/dwTGQwAz #socialmedia #billionaire #twitter #indianstartupnews
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Trevor Noah brilliantly points out an interesting contradiction: “People argue that you can’t tax billionaires on their shares because it’s an unrealized gain. They say, ‘You’re worth $300 billion, but we can’t tax you because you haven’t sold the shares. You don’t have the money.’” Yet, when Elon Musk offered to buy Twitter, he used his Tesla stock as collateral. Suddenly, those shares were valuable enough to back a multi-billion dollar deal. It raises an important question: When it benefits them, their assets hold value; when it comes to taxes, it’s a different story. #Taxation #Finance
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