The social media network X, formerly known as Twitter, has gone through many ups and downs since Elon Musk’s buyout, and another one is just around the corner. A group of Wall Street banks is reportedly getting ready to sell up to $3 billion of debt holdings in X.
According to Bloomberg, a group of bankers led by Morgan Stanley contacted investors ahead of the planned sale that could take place as soon as next week. Morgan Stanley was one of the banks that lent Musk the money to complete the $44 billion buyout of X in 2022, along with Bank of America and Barclays.
They’re reportedly expecting to get 90 to 95 cents on the dollar, after contacting a small group of investors to assess their interest in the buyout. This marks the bank’s latest attempt to rid themselves of $13 billion of debt tied to Musk’s purchase of X, following a recent offload of about $1 billion to multiple investors in a private transaction.
X faced many changes since Musk took control of the social media platform in 2022, from the name change to massive layoffs that impacted thousands of people. The banks’ past attempts to sell the debt associated with the Twitter buyout led to significant losses, but there’s growing optimism surrounding the social media platform after Musk was appointed the Administrator of the Department of Government Efficiency in the U.S. Government.