X, formerly known as Twitter, looks like a pretty bad investment right about now.
As readers might recall, Elon Musk borrowed $13 billion from Morgan Stanley, Bank of America and five other major banks to help finance its $44 billion acquisition. According to the WSJ, the deal has since become the worst merger-finance deal for banks since the 2008-2009 financial crisis.
Why? When banks lend money for takeovers, they usually sell that debt on to others, earning fees on the transaction. That hasn’t been possible with X because of its weak financials, so the loans have weighed the banks down, becoming, in industry parlance, “hung deals.”
The WSJ notes that the banks agreed to underwrite these loans “largely because the allure of banking the world’s richest person was too attractive to pass up.” Now, it looks like a costly mistake unless they can extract interest payments from X, plus a repayment of principal once the loans mature.
SleekFlow, a Singapore- and Hong Kong-headquartered social commerce platform that has built a conversational AI suite for customer engagement targeted to Asian markets, said Wednesday it had secured a further…
X, formerly known as Twitter, looks like a pretty bad investment right about now. As readers might recall, Elon Musk borrowed $13 billion from Morgan Stanley, Bank of America and…
Renovate says this model is faster and more accurate than its predecessor, despite being roughly half its weight.
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Though PayPal has not yet confirmed it will now develop a competing wallet thanks to new APIs, the company has hinted in that such a plan is in the works.
Welcome to TechCrunch Fintech! This week, we’re looking at the respective demise of Tally and Score, plus examining Klarna’s latest business move. We also have a list of fintech companies…
Fabric has developed a custom RISC-V-based chip that is optimized to run the algorithms necessary to establish zero-knowledge proofs and enable fully homomorphic encryption.
BEVC is the latest life sciences VC to add planetary health to its portfolio, suggesting that the trend is catching hold.
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The Rounds, the startup that delivers recurring grocery and household essentials in reusable packaging, announced on Monday its $24 million Series B funding round. The new capital will go toward…
The U.S. Department of Defense is a mammoth organization. It not only employs millions of service members and hundreds of thousands of civilian employees, but also has the world’s largest…
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Update: Authorities have yet to access the inside of the sunken yacht, and Mike Lynch is still classified as missing. Other details have emerged in the interim. The accident appears…
Global technology giants are pushing back against attempts by India’s telecom networks to bring internet services under stricter regulation, rejecting arguments that such measures are necessary to create a “level…
Pakistani startup PostEx is entering Saudi Arabia as first global market after hitting $21 million ARR in the South Asian nation.
The AI boom is fueling the demand for data centers and, in turn, driving up water consumption. (Water is used to cool the computing equipment inside data centers.) According to…
