Morgan Stanley has finally managed to dump a massive chunk of the debt tied to Elon Musk’s $44 billion takeover of Twitter, now rebranded as X.
The bank, along with its lending partners, offloaded $5.5 billion worth of loans—a major move considering how hard it was to find buyers for this debt in the past. This follows a $1 billion sale last month, signaling that investors are starting to bet on Musk’s leadership of X despite ongoing financial struggles.
Who Bought the Debt?
A mix of heavyweight investors, including Citadel and Apollo Global Management, jumped in. Initially, banks planned to sell around $3 billion, but demand exceeded expectations, leading them to sell $5.5 billion instead. Buyers picked up the loans at 97 cents on the dollar, higher than the originally expected 90-95 cents, locking in an 11% yield—a strong return for risk-tolerant investors.
Why the Sudden Interest?
Investor confidence in X is rising, thanks to a few key factors:
- Musk’s Political Influence – His ties to Donald Trump and rising political relevance have made him a major player in tech and policy. Some investors see this as a sign that X could be in a stronger position moving forward.
- Advertising Recovery – Major brands that pulled ads from X due to controversy are slowly returning, helping stabilize revenue.
- X’s Business Model Shift – Musk has aggressively pushed subscription revenue and new monetization strategies, which could boost long-term profitability.
The Bigger Picture
Banks had been struggling to offload this debt since Elon Musk’s acquisition. X has faced user stagnation, revenue dips, and heavy cost-cutting, leading to doubts about its future. However, this sale by Morgan Stanley indicates that Wall Street is beginning to reassess its risk appetite when it comes to Elon Musk-led ventures.
Despite the debt sale, X is not out of the woods yet. Musk himself admitted that the platform is just breaking even, and challenges like moderating content, retaining users, and fending off competition from platforms like Threads and Bluesky remain.
Morgan Stanley and its lending partners still hold billions in Twitter/X debt, but this successful sale could pave the way for more sell-offs in the future. Investors are now watching closely to see if X can turn its financial outlook around under Musk’s leadership.
For now, the market has spoken: Elon Musk and X still have believers.
- Elon Musk’s X Sees Big Investor Interest as Morgan Stanley Sells Off Debt - February 7, 2025
- Honeywell is Splitting Into Three Companies: What It Means for Investors - February 6, 2025
- Ford’s Stock Takes a Nosedive – What’s Behind the Shocking Drop? - February 6, 2025
 debt, signaling renewed investor confidence in Elon Musk's platform.){kind=link}