Musk acquired Twitter in October last year for $44 billion, part of which has been financed via debt.
Twitter has reportedly made its first interest payment on the debt that its now-head Elon Musk used to buy the microblogging platform last year. According to a Bloomberg report, the social media giant made the first interest payment of around $300 million on the $12.5 billion worth of debt.
The American social media company paid seven banks led by Morgan Stanley, which became stuck with the debt after they were unable to sell it to outside investors, the report added. There is no official confirmation from the company yet.
Musk acquired Twitter in October last year for $44 billion, part of which has been financed via debt. The Tesla chief also offloaded shares in the electric-vehicle company to fund his Twitter takeover.
Following Musk’s takeover, the Blue Bird has managed to garner regular headlines about mass layoffs, weakening content moderation policies, a surge in fake accounts, and re-activation of accounts of some controversial celebrities. Since the change in ownership, Twitter is also fighting to retain advertisers, and last year launched Twitter Blue with the view of growing revenue.
According to a Reuters report, sales of digital ads on the social media platform fetches the company nearly 90% of its revenue. In November, Musk Tweeted that the company has had a “massive drop” in revenue owing to pressure on advertisers from activist groups.
