Wall Street banks intend to sell X debt for less.

Wall Street: Elon Musk paid $44 million in 2022, including $13 billion in financing, for his social network, and bankers are apparently preparing to sell off debt for this purpose. According to the WSJ, Morgan Stanley is spearheading the effort to sell senior debt for 90 to 95 cents on the dollar.

According to the site, bankers usually don’t have debt for years, but unstable times can affect such plans. Since Musk took over, X has been characterized by volatility, with advertisers scoffing at the possibility that extreme content on the platform could harm their companies. In a January email obtained by the WSJ, Musk informed employees that “our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even,” despite Journal sources claiming that X’s financials are improving.

In that same email, Musk allegedly noted X’s “power” to “shape national conversations and outcomes.” However, it’s unclear if its influence is drawing back advertising. Big businesses may face additional challenges as a result of Musk’s gesture at President Trump’s inaugural celebration, which many interpreted as a fascist salute.