Musk Pays Around $1 Billion Annually In Interest For Borrowing From Banks To Buy Twitter

The actions Elon Musk is taking to improve Twitter’s financial situation, including selling Twitter certifications for $8 a month and mass layoffs to reduce payroll costs, raise the question of why Musk is so eager to reduce expenses. Well, it turns out that the reason is actually very simple: a considerable amount of bills need to be paid.

It is reported that Musk borrowed $13 billion from banks to buy Twitter and the interest on this debt alone comes to $1 billion annually. As reported in June, Twitter lost roughly $270 million on sales of just over $1 billion, Twitter has always been a loss-making business. With such a heavy debt load, Twitter is simply unable to carry on with business as usual, and Musk’s corrective actions might have backfired.

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