Social media platform X is planning to repurchase the final high-risk debt piece from the Twitter buyout.
The Debt Story of X
The remaining debt piece linked to the 2022 Twitter buyout, known as second-lien debt, has been held by major banks, including Morgan Stanley. It's the least attractive debt for buyers.
X's Financial Performance
X recently showed improved financial performance, posting $400 million in EBITDA on $710 million in revenue for Q4 2024. Despite this, X's revenues have dropped nearly 50% since the Twitter buyout, and the company is working to balance this with significant cost-cutting measures.
Investor Interest and AI's Role
Investor interest has increased due to X's involvement in the AI project called xAI. This offering, backed by Morgan Stanley, appeals to investors looking to benefit from X's improved financial data and AI potential.
Despite challenges with debts and declining revenues, X leverages new financial data and AI projects to attract investor interest and ease the burden of debt obligations.
