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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00:00It's Benzinga, and here's what's on the block.
00:02Elon Musk's $44 billion acquisition of Twitter, now X, has led to the worst merger finance
00:08deal for banks since the 2008 financial crisis.
00:11Seven banks, including Morgan Stanley and Bank of America, lent $13 billion for the
00:16deal, expecting to offload the debt quickly.
00:18However, due to X's weak financial performance, the loans have remained stuck on the bank's
00:23balance sheets, causing significant financial strain and write-downs.
00:27This hung debt has negatively impacted bank profits, market standings, and employee compensation,
00:32making it one of the most challenging deals since the financial crisis.
00:34For all things money, visit Benzinga.com.